It's not only now. Product tying has been considered a bad thing for a long time. Console "exclusives" are pretty much the definition of tying. Why are businesses suddenly given unlimited leeway with anticompetitive practices (e.g. preventing anyone from offering a switch-compatible device with better frame rates/resolution) once copyright is involved? Emulators demonstrate that it's not a technology constraint causing market failures.

You should be able to buy a switch compatible device from e.g. Asus if you're not satisfied with Nintendo's hardware. Tying media to the device is just as absurd as requiring Sony speakers to listen to music from artists that signed with them or requiring a Disney television to watch sports.