I think Nintendo want to put out a Switch Pro, they probably wanted to last year, but instead we got the OLED because of the ongoing chip shortages.
While the pandemic has hurt companies, I believe it’s benefitted Nintendo far more than it hurt them. The Switch was the ideal system when COVID hit and Animal Crossing released at the perfect time that helped create an explosion in sales. The pandemic has definitely affected Sony and Microsoft infinitely more. The more those 2 companies get a foothold in this generation, it will inevitably affect Nintendo, despite being rather different.
Whatever about paring down PS4/XB1 generation games, as developers move more and more exclusively onto next generation hardware, those Switch ports will dry up.
Nintendo didn’t need to release the Switch Lite but they did, it reaches another subset of the market. They’ve done numerous iterations of their previous handhelds. If the Switch doesn’t get another iteration, it won’t be for the lack of wanting to on Nintendo’s part. This shortage may prevent them from releasing an upgrade, but I could well see them releasing a Switch Lite OLED.