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I think it’s happening alongside Monster Hunter Rise and Balan Wonderland. MHR looked really really good in that trailer, so much so that I’d be really surprised if that was running on regular Switch hardware. Not impossible, devs have gotten some amazing looking games out of Switch so it could be stock.
The other thing though is Balan Wonderland releasing the same day too; nothing weird about publishers releasing games on the same day of course but it’s oddly specific and would line up well with Nintendo wanting a handful of games to sell new hardware (Balan is targeting PS5/Series X so them making use of a Switch Pro to do that game justice wouldn’t be surprising).
If history’s anything to go by the New 3DS launched some 3 years or so after the original so an upgraded Switch should be due by now. Nintendo have never gone a generation without releasing a significantly improved version of their handhelds, I don’t see why they’d change that now.