I honestly think COVID/chip shortages occurred, still needed to release a product.
We get this amalgamation of SWOled due to existing contracts. Screen parts/dock Nintendo releases this side grade and Pro/Switch 2 at some point with this newer screen.
But did they NEED to? Switch is still #1 console month to month. At some point you reach saturation, yes, but not at the point where you need to release a half-step rather than go the full Monty.