It really doesn't have to, even if it launches and it ends up being graphically on par with a PS4, that'll be plenty enough for 99% of players.
Graphical fidelity is no longer a selling point for games because we already hit diminishing returns, what matters is interactivity, mechanics, art direction and depth. Just look at the recent debacle from Obsidian with Avowed, the game is being compared with Skyrim of all things an it comes up short because it lacks gameplay features and refinements that were standard in older RPGs, also graphically it doesn't really do much more than Skyrim, in some aspects it is even worse and gameplay wise it is downright archaic. At this point the selling point of games is not going to be graphic fidelity but the level of polish and a showcase of innovative features created by talented developers what's going to shine through. Also good looking characters, both playable and NPCs go a long way to sell your game instead of the visual monstrosities Western developers keep trying to push on the audience. I don't care how realistic and advanced are the graphics if all that power is being used to render something that looks like it is missing a chromosome.
If there are developers out there that won't find the Switch 2 acceptable to develop for, that a sign they are the ones creating inadequate, unoptimized software, it won't be a problem with the hardware. There are games that came out in the 2010s that look on par with stuff being released today, I'm done with developers making up excuses as to why they need you to buy the latest, most powerful gamebox because their trash code cannot run at a consistent 30 fps otherwise.
