The portable screen is just 720p, which is not the end of the world. What I found surprising is that even when it's running Zelda on a full display, it only runs at 900p. I think if it can't do 1080p in 2017, it's fair to call it underpowered.
By that standard, the ps4 and xbox one are also underpowered because some games on those platforms also run sub-1080p. Every game makes performance tradeoffs. Some games on Switch will support 1080p, others will opt for other visual bells and whistles.