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The "fit" statement can mean multiple things.
1. Indeed power. The Switch is less powerful than the XBOX ONE and PS4. We knew this since Nintendo announced the Switch. Simple.
2. Multiplayer only focus. Do you think the Switch is a good "fit" for games as Paladins, Fortnite? I don't.
3. Audience. Yes, I think you'll hate this one the most. But the XBOX ONE and PS4 is mostly aimed at the Tweens. (12-24 years) where the Switch is either for younger gamers or for older (nostalgia).
4. Huge bags of cash from MS / Sony. Yep. See Capcom and there "Monster Hunter"-explanation.
5. Money & time to port the game. This one is very important, some developers are smaller and don't have enough people to create a game for PC, XBOX ONE, PS4 and Switch at the same time. PC, XBOX ONE and PS4 are all very similar in capabilities and architecture. The Switch is portable and thus different. (This is why some ports aren't as good as possible on the Switch). This is not the same as 1, even if the Switch was as powerful as the XBOX ONE and PS4, but in it's current form factor it would've been too difficult to port a game to the Switch and take full advantage of it.
All of these factors count, and some companies have a history with Nintendo consoles (and terrible third party sales). So they think twice before making the plunge. It sucks, I know.