I think you’re underestimating that many (maybe most) parents today were or are (once) gamers. Today’s parents are kids from the 80’s and 90’s. Kids who grew up with NES, SNES, Megadrive and PSOne.
Of course, there is also a group that does not (yet) understand this. But the fiasco of the Wii port to WiiU is already 10 years ago!. This is another demographic. And Switch -> Switch 2 is easier to sell than say the Wii (U). The WiiU was backwards compatible.
I understand the fuss, and also why they don’t do a mid-life update like with the DS -> DSi. Or specifically 3DS to the “new” 3DS. The latter does not have much added value, but it can be made more expensive. And certainly with the numbers they’re selling now, a potential update and market split is a risk. For the New 3DS only 6 games have been released which are unique to that system.
And yes, there is less demand from the “hardcore” group than the Xbox One X -> PS4Pro. There are fewer people who necessarily want some extra frame and have a VRR TV. Or who wants 1440p instead of 1080. Not many shovelware makers will want to invest those extra improvements in better assets or an extra quality profile. But on the other hand: Don’t forget how many “hardcore” gamers still have a Switch for Mario Kart, Smash or Splatoon. Or you want to play an epic Zelda, Mario or Xenoblade Triangle Tactics adventure. Anyway, they’ll buy those (big) titles anyway…