I mean nothing wrong with having it on the platform, but it isn't exactly the pinnacle of modern tech. It was released in 2011, and the console versions were designed to target systems with 512MB of RAM (unified for the 360, 256/256 system/GPU for the PS3) at 1280x720@30fps. That was fairly low spec then, since the consoles were old (remember Oblivion released in 2006 as one of the first flight titles on the Xbox 360) and is really low spec now. It wouldn't at all surprise me if my Shield Tablet could handle it easily. It has more RAM, and its GPU seems to be at least as powerful as the 360/PS3 era stuff.
So while there's nothing wrong with Nintendo getting games like this, it isn't really some major win, or proof of a high spec system. We saw the same kind of thing happen with the Wii U where it got games that previously the Wii hadn't because of a lack of power.
The issue in the long run is that being too low spec can exclude games from being released on your platform. While people like to claim "graphics don't matter" they do and they sell games. That aside, there are a lot of things you could want to put in a game that will require more memory, more CPU, more GPU and so on. Developers aren't always going to be interested in either compromising on what they want to make, or producing a cut-down version to target the lower spec hardware.