At the moment, the only significant function of Switch 2 is to give Switch users the option to play their games with slightly better performance. It could be much better performance if developers stopped being lazy and released patches for their games to take advantage of the much more powerful hardware.
A long time ago, the logic behind console consumption became the same logic behind game-PCs consumption. People no longer buy the new video game system because they want the new exclusive game everyone is talking about, but because they want to upgrade their gaming experience, period.
That's why, five years after the PS5 was released, 50% of PSN users were still on PS4 (just like PCs, not the entire user base upgrades immediately). That's why the PS5 is profitable even though it has virtually no exclusive games. And that's why so many people bought the Switch 2 even though there was only one notable exclusive game.

That's what I've been saying, console consumption is becoming more and more like PC consumption. You don't buy a new PC because someone has released a new product that is only compatible with it, but because your old PC is performing worse and worse with new releases. People slowly migrating from PS4 to PS5 are just upgrading with the idea that PS5 will make the experience better, not because they want to access specific blockbusters.
This reality will even affect the Switch. With backward compatibility, the biggest reason to buy the Switch 2 right now, and probably for the next several months, is to play Switch 1 games in a more satisfying way.