one of the issues...i think. if you make a game now, it has to scale to different resolutions for different displays.
so to do that cheaply you need to use some kind of vector art. which gives everything this kind of vector smoothness which eliminates some of the roughness which gives character and charm.
but i agree that the switch is the closest remaining thing to that past era.
Only because they are underpowered with old hardware. Just overclocking gives better performance but still dips below 60fps on first party titles. But they had to make those sacrifices because it's a portable console first with a tv dock. Nintendo always had slowdowns from the beginning with nes, SNES, N64. But these days it's just not acceptable to have those kinds of performance issues.
Switch games still have markedly diverse graphic styles (and _great_ art direction).