The Switch is a super Wii that you can take with you. If that idea resonates with people, then the power differences don't matter. A lot of it comes down to how well the fancy new rumble works.
If you think that the general public, by and large, gives a crap about "HD rumble" -- or, for that matter, the majority of the hardcore gaming population! -- sorry, but odds are that you are mistaken. I personally am willing to bet that 1) it's actually really awesome and that 2) nobody will care. That is not why someone rushes out to spend $400+ on a console and a couple of games.
Tons of people are happy to pay north of 600 bucks for a phone that is essentially the same as the one they paid 600 bucks for 2 years ago, with a few tweaks.
You do realize that many of the people doing that are not actually paying all at once, right? They pay $20-30 a month to their cell phone company until the thing is paid off. And then, they get another new phone...
I wish I could go back in time and slap the shit out of the guy at Microsoft that came up with the idea of paying to play online.
You know what? As an XBLIG developer I can tell you that Xbox Live is extremely well-designed, and allows developers to add online features to their games with almost no effort at all. You add a few lines of code and XBL handles matchmaking automatically. Leaderboards, Achievements, voice chat, other features are all handled almost automatically. All of this is powered by huge banks of servers all dedicated to the purpose. Developers don't even need to run any servers, and they have online play in their games. This is why you can still play Dead or Alive 4, or Ridge Racer 6, or any of the other Xbox 360 launch games online, and why you'll be able to continue doing so until MS shuts down Live on 360 entirely (which is unlikely anytime soon due to how popular BC is).
You think it costs nothing to run all of those servers? You think that Microsoft's massive developer-friendly efforts shouldn't be compensated? I have paid for Xbox Live for 11 years and will continue to do so, because I believe it's worth every penny. Will Nintendo's network service be worth paying for? Who knows? We barely know anything about it yet!
I'll say it again Portable screen
Also Mario this holiday.
A $100 Android tablet has a portable screen. And guess what? You'll be able to play Super Mario Run on it!
The casual market for dedicated game consoles is finished, done. They are playing games on tablets and phones now. Switch is an underpowered, overpriced home console, plus an overpriced dedicated gaming portable.
I know Super Mario Odyssey looks sweet. Yeah, I'll want to play it. And you know what? I eventually will...on a PlayStation or an Xbox. Quote me if you want to. If Nintendo doesn't start actually listening to the market, that's what's coming next. Unless...
I don't think a company can make significant changes 6 weeks before launch because everything is usually set in stone but Nintendo needs to drop the price to $249.99 and include 1, 2, Switch with the system or it is going to fail.
This is exactly how I feel. Better to admit your mistake and fix it now than to wait until January 2018, when the holidays have passed and Switch is sitting at 2 million sold, try for a 3DS-style emergency price drop, and then realize that it's already too late.