Software and Hardware don't exist in a fucking vacuum. Holy shit... the price of hardware is directly connected to what experiences that hardware can run.
Why the fuck people buy iPhones? Because they're the only ones who run iOS. And they like iOS because it gives them a good experience and the apps they want. The cameras are basically the same nowadays, the inside is basically the same, but people still pay the Apple tax. It doesn't matter if the hardware is expensive or outdated, the experience of using it is what matters, and the price will reflect that. If Nintendo puts this hardware at this price, it's because only them can offer Mario, Zelda and Metroid. If you want to play them anywhere else, well, you can't. If Nintendo was competing on third parties (with some exclusives) with Sony and MS, they would be forced to put it in the same price range and compete in the same type of hardware, because the experiences they would have would be basically the same (that's why you have Xbox and PS on the same price range all the time, more or less). Nintendo doesn't do that, they tried and they failed.
The demand for the Switch is insane, why would they cut price? Why would they release the successor right now? Nintendo is a gaming focused company, they don't have the luxury of selling at a loss initially and them having other parts of the company recoup what was lost. They play it safe? Yeah, they do, but they can actually pull it out because people like Nintendo.
The market doesn't give a shit if you want a Pro or not. Now we have a cheap switch, a mid range one, and the most premium one... all running the same but with some distinctions between them. But the experiences are still exactly the same, and that's what sells it. Deal with it.