Also Nintendo should focus on handhelds. The difference is enormous.
Hence the entire point and purpose of the Switch.
Nintendo shouldn't focus exclusively on handhelds, that would be a losing path.
Dedicated handhelds have historically lower tie ratios than home consoles and that's software (+ DLCs, online subscription, accessories and in short everything that's around a console) which generate the true profits.
With the increase in development costs and the weakened position of dedicated handhelds outside Japan it doesn't make sense to go all out on a dedicated handheld console.
Switch makes sense because Nintendo is selling the concept of a home console that can be enjoyed wherever and whenever you want and with who you want.
This mean that the tech that power on the Switch is obviously thought for mobile but the software price, hardware price, online subscription are inline with those of a home consoles.
Switch software tie ratio will also be higher than the ones typical of dedicated handheld consoles.
The added benefit is also that Nintendo is unifying the development environment which in turn will speed up development and freed up resources compared to having teams tackling wildly different consoles (from an architecture point of view) which are on the market at the same time.
These freed up resources can then be used to quickly create DLCs or other other profitable projects.