Well yeah, the switch is behind the PS4 in terms of graphical capability and just general processing power. So games have to be simplified down in terms of graphics and such so the console can actually run them.
This is the reason to why there's not likely gonna be very many non-switch exclusive AAA games that get ported to the switch, due to the fact of how much more work they have to do downgrading the game's graphics and making the engine (if it's a custom one) capable on running on ARM.