We don't need a new switch or any stronger gaming hardware at all. There are games 10 or maybe even 20 years old at this point who nail realism. Once I'm in the flow of the game, I wouldn't rate e.g., Dark Souls 1 visuals below Eldenring despite their ~10 year gap. So I'd prefer not spending on a new console every so often.
More recently, I couldn't tell you the difference between a PS4 and a PS5 release without a side-by-side comparison. Maybe in loading times, but a PS4 with an SSD would have done the job. Once again, I won't spend on a PS5 for as long as possible.
Lastly, without this focus on graphics, development time and cost probably wouldn't be so ridicolulous as it is today.