What mattered for the port discussion were the scarcity of AAA 3rd party franchises that move tens of millions across a generation, and those were effectively scarce.
The huge gap in performance resulted in the Switch getting no Call of Duty, no Battlefield, Battlefront, no recent Final Fantasy, no Overwatch, no Far Cry, no recent Assassin's Creed, no Destiny, no The Division, no GTA, no Red Dead Redemption, etc.
The list goes on and on.
Ok, I think I am on the same page as you now. Most AAA developers looked at the potential return on investment, and decided that it wasn't worth the investment. This was my point of view from the beginning, it would and has been a financial decision, and not an insurmountable challenge that couldn't be overcome. Some publishers like Bethesda have looked at Switch as an opportunity to grow their audience. Probably willing to accept smaller returns on investment inorder to gain new fans. Then you have Capcom who has supported Switch, but with very low investment, primarily selling old games. This strategy had worked pretty well for them because the portability factor is enticing for many.
Good comments on FP16. I miss the good old days when Shin'en would give in depth interviews detailing things like that.
Nintendo is likely to stick with this hybrid setup for its next console, meaning Nintendo will again be under powered in a big way. Even releasing 4 years after the PS5 probably wouldn't be long enough for mobile tech to match its capabilities in the portable form factor. For the successor, I think the smart move would be to release once Nivida can create a new Tegra chip that exceeds the base PS4. As we have seen with Switch, ports of old 360/PS3 games have done pretty well on Switch, and I do not see why PS4 ports on Switch's successor wouldn't be well received in the same fashion. Question is how long will it take Nvidia to get there.