Yeah, looks like I just misunderstood the marketing. For anyone else interested, here is an official list of what is supported. It seems to be only a minority that won't work.
https://www.nintendo.com/us/gaming-systems/switch-2/transfer-guide/compatible-games/
Yeah its a bit much, but what they are offering is somewhere between the PS4 Pro / PS5 now in terms of performance when docked so I don't think its necessarily over the top with their MSRP.
My biggest turn off so far is paying that, then having to purchase individual upgrades for SELECT switch games to transfer over seems a bit stingy. I would understand wanting money for upgrades if it wasn't just hardware performance improvements, but just let me play the old version of the game on the new console.
The price floating around seems to be $449 for the system. Not officially announced though.
Yep, I definitely misunderstood. I added a link to an earlier reply with everything that supports the transfer.