13 million people bought the Wii U.
61 million people bought the 3DS.
Their handheld systems have always outsold their home systems by a substantial margin each generation. Not even when the Wii was selling gangbusters it managed to reach the heights of the Nintendo DS.
There's no reason to believe that they would be able to expand their home console base significantly by making a Nintendo Scorpio. That audience expects Nintendo to step out of their comfort zone of modest production- and marketing budgets, which is something I think they'll never do. BotW is seemingly their most ambitious title to date (open world, voice acting, lots of detailed animation), yet it's going to compare unfavourably in the eyes of that audience to something like Horizon and The Witcher, because Nintendo cut corners on textures, dialogue, and other production values.
I was down on the hybrid concept at first, but the gulf between the tech you can fit in a portable, and what fits in a console, is large enough that it'd be contrary to their goal.