I think a big part of the problem is that they haven't done much to show that they've evolved in terms of content and services. The main difference between the 2010-2017 Nintendo that seemed to be struggling to maintain its standing, and the Nintendo of the past two years is now they have pretty desirable hardware.
Third party support doesn't necessarily seem to be trending upward. Halfway through their second year, 95% of what's coming was previously known or heavily rumored. It's mostly late ports of niche titles. The big first party titles that they're announcing and promoting are know quantities. There was always going to be Smash, there was always going to be Mario Party, there was always going to be Pokemon. Sure, these titles will sell well, but they speak the most to the crowd that's mostly already there for Nintendo. The people that helped them to the biggest console launch year in North American history. It takes a very specific type of person to sit through 25 minutes of talk about the 5th entry in a mascot fighting series and not think "what the fuck are they showing me right now?"
It also comes across as pretty arrogant that they're pretending their back catalog, that no other publisher can even come close to matching, shouldn't be a priority to bring to their system. They've dropped that, and they've picked up a subscription service that seems more like a $20 annual charge for absolutely nothing of value. Their online services and features don't even match what they provided on WiiU. They've delayed this service for over a year and seem to be content with the business model of "start charging them $20 for basically nothing."
They need to adopt the Gamepass model by leveraging a comprehensive selection of their NES-Wii and GB-GBA catalog for a reasonable price. Anyone with the take that they'd be giving away too much value with something like that is way lost in the sauce. Microsoft ties their brand-new first party titles to their service. Offering a selection of games that are mostly old enough to drive isn't altruism, it's the right business move. That's a system seller that would generate a $multi-billion$ annual revenue stream separate from the need to create new content.