A Direct is announced for April 2nd to cover the games.
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Another commenter elsewhere mentioned that things like Labo or Ring Fit won’t (likely) work because of the different sized controllers. I would be surprised if other games that don’t use special extra hardware work just fine.
Normally I’d disagree (because games written for a single console don’t do well with hardware upgrades), but since the old console already runs at different speeds when handheld and docked, I’d expect most games to be able to handle faster processors safely. We’ll have to see how that shakes out. If it really does run them better, and it has drift-proof sticks, I’m quite interested. Otherwise, I’ll wait a year or 2 until there’s a good, cheap library of games for it.