That's sort of Nintendo's console strategy in a nutshell. Why chase specs when you can just create the best $250 hardware you can and then make amazing games for it? Bonus, since you don't have to care much about being a port target for 3rd parties you can experiment with input methods and other innovations.

It's a good plan, I just wish the hardware were slightly nicer. Like, every smartphone on the planet has had scratch-proof glass for years and years, but the Switch's screen is this cheap plastic which is very easy to ruin.