Yes, they've gotten better, but their SoCs are still very stingy with GPU performance. For most of their AI horsepower, they have a purpose-built DLA (Deep Learning Accelerator) block.
No doubt Switch 2 is going to be better, but I still don't expect it to be in the same ballpark as Sony and Microsoft's big consoles, even with them now being 4 years old. I expect it could definitely contend with Steam Deck, however.
Yeah, I wouldn't want a handheld console, either. As a kid, I once borrowed a gameboy to take on a family vacation with a 1 day drive each way. So, I can definitely see the appeal. However, without a need for a handheld gaming machine, I wouldn't want to be restricted to the reduced processing power of one.