Devs tend to go with simplified or cartoony graphics for legibility on the small integrated screen, but that's just an art style choice. Doesn't look too far off from Xenoblade 3, especially given polygons will be saved by not having to render a mile out. Or consider that Doom 2016 runs decently on the Switch.

I thought that too. But this is the end of the consoles life and devs now know every trick. Also the areas in the trailer are pretty limited, so it's a bit less taxing than an open world game for example.