I imagine that AMD is more motivated to keep Microsoft/Sony happy than Nvidia is to keep Nintendo happy.
I don’t think it’s about making anyone happy, it’s about feasibility. From NVidia’s point of view, the first Switch was a throw-away project made up of already way outdated components. They literally just gave them the then currently in development NVidia Shield Tablet (meant for PC game streaming and Android apps) and let Nintendo stick the controllers to the side and port their 3DS operating system over. It was cobbled together to have a Wii U replacement relatively quickly.
Adding transistors for hardware-level backwards compatibility probably has more downsides on a portable console than benefits.
I don’t think it’s about making anyone happy, it’s about feasibility. From NVidia’s point of view, the first Switch was a throw-away project made up of already way outdated components. They literally just gave them the then currently in development NVidia Shield Tablet (meant for PC game streaming and Android apps) and let Nintendo stick the controllers to the side and port their 3DS operating system over. It was cobbled together to have a Wii U replacement relatively quickly.
Adding transistors for hardware-level backwards compatibility probably has more downsides on a portable console than benefits.