Is Nintendo trying to have another Nintendo DS moment? If you remember, the DS was meant to be a "third pillar" for the GameCube and Game Boy until the DS proved successful in its own right to outclass the Game Boy. Then, Nintendo started iterating on the DS itself with the DSi, 3DS and NEW 3DS for a number of years.
Of course, the DS had the advantage of being a competent gaming console with little competition, even from smartphones. I'm sure the Switch 2 CAN compete, but the Steam Deck could get Nintendo a run for its money as a handheld gaming system. All it needs to do is to NOT repeat the Wii U's marketing with its familiarity to the original Switch.