I actually am not a huge fan of this partnership. I think that apart from creating a better OS, Nintendo has nothing to gain quality and creativity wise from partnering with Microsoft. I'd rather not have Microsoft's lackluster handling of first-party influence Nintendo in any way. If it's just Microsoft putting some games on Switch then sure, but why would they do that when Xbox barely has any first-party games coming out anyway.
I'm not sure what Xbox's game plan is, perhaps they want to put the cloud version of the next-gen console on Switch, with some kind of revenue deal with Nintendo? That would alright, I'd probably pay for that when some of those new acquisitions start to bear fruit.