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I don't upgrade my phone for fun, I upgrade when thirstier software and stuffed storage slow it down to unreasonable rates. Similarly, I'm still on a first gen Xbox One from 2015 and it keeps getting noticeably slower, though mostly from newer games being more demanding rather than storage. As devs are directed to focus on more volume and novelty of content without concern for efficiency because "power is cheap", this isn't going away. So over time, yes, more power is more better. It's not the only improvement, but it's required.
As for future innovations? Nintendo being dead? Look at your list, then look at the list of all Nintendo gaming consoles. You've listed about 1/3 of what they made since 1990. Not every console gets to be a revolution. Sometimes they're just an improvement. Gameboy Color added mild color and smaller size to the Gameboy. While the disc system was not initially well received, the GameCube system and cohort of games was peak for many. The Wii U didn't do anything special that I can remember. The Switch Lite took away Switch features but is loved more as a Gameboy BigBoy. There's the NES and SNES home consoles that were leaps and bounds more powerful than prior options.
As for your main point, there's really no telling what the next innovation will be. Look at the N64. You're missing the other huge update: 3D modeling. And, to an extent, it had a unique quality of the time with "round" models. Insert joke about Lara Croft ps1 boobs here... Or just a joke about how Nintendo's joysticks are actually awful with deadzones and drift. Looking at your point for the Switch, I'd say Nintendo didn't even drive that feature of being hybrid. It couldn't have happened without the general electronics industry creating sufficient batteries. Actually, similar point for your DS accolade: Nintendo didn't create the touch screen, they implemented it. The point is innovation is not predictable. It's often borderline unimaginable because it takes a combination of invention, implementation, and adoption. Maybe they'll make VR work for the masses. Maybe they'll figure out convincing pseudo-holograms like the Star Wars chess board. Maybe it'll be an even smaller console. Maybe it'll capitalize on mobility and travel. Who knows? I don't have a crystal ball.
To call Nintendo dead for one cycle of status quo is short-sighted, in my opinion.