They fully compensate hardware with portability and the most polished titles you can find. Also, their first-party games look better on 720p switch display then like 98% of all games on 4k displays.
You can make the best hardware possible, but practically no companies can achieve Nintendo level quality.
Some of the first party titles are polished, some isn't. Most third party isn't. It's a sad state of semi-decent hardware with low quality software overall.
If you're only going to play a selected few Nintendo Games, such as Zelda, Mario and Mariokart, sure. But to be honest here, Zelda and Mario isn't very nice to play portable. Doing boss fights portable is certainly possible, but also so much harder.
I really wanted to like my switch, I really wanted to like the portable experience, but in the end I realized that portable works best for slow indie games and docked works best for a few first party games.
I probably would have enjoyed a cheap Xbox One and a used Playstation Vita more.
You can make the best hardware possible, but practically no companies can achieve Nintendo level quality.