Fundamentally, the issue here is people assuming that a video game console needs rough power parity with the other consoles on the market in order to succeed, and if it doesn't, then it won't.
The problem, if you can really call it a problem, is that Nintendo is proving this to be complete nonsense with the Switch. It didn't have power parity with the PS4/XBone, and it has even less power parity with the PS5 and Series X, and this has not slowed down its sales at all. And people, both inside and outside the industry, seem to have no idea how to process this fact.