I completely agree - this is more of a successor for the 3DS and the DS family in general, which has had it's lunch eaten by iPad.
Someone at Nintendo made a statement about how the tech is ready to remove the distinction between mobile gaming and living room gaming, and I think they were right (graphics are good enough on iPad/iPhone and higher end Android devices). This device makes tablet gaming look more like traditional tactile gaming, with it's funky built in controllers, and it's powerfull enough (as was the Wii U - which as a side note should have been named something more distinct).
What this console doesn't solve is the content pipeline - AAA studios are going to continue to produce content for the more powerfull standard bearers on XBox and PS4 (and PC). They're not going to want to port to the smaller market share of Nintendo Switch. We may see iOS and Android ports, but in order for this to really be successful Nintendo will either need to produce a TON of content in house, or find some other way to get third party support for this directly. Being a successor for the 3DS may provide the necessary market share to incentivize proper game development on the platform.
Nintendo does need to solve their ridiculous single console game install policy though, I don't want to re-buy my virtual console games for a third or fourth time. Steam, Google's Play Store and Apple's App Store are the right model. Nintendo needs to stop fooling around.