Edit 1: Vibrant Visuals can be turned off completely while not in a world from settings. Setting the graphics mode to Fancy and FPS to Unlimited from here will give you up to 120 FPS and a max. render distance of 28 chunks! The controls and responsiveness in the game are also just like S1 edition in this mode. Thanks to TabouletVR in comments for that. The settings below are specifically for Vibrant Visuals.
The Switch 2 Edition‘s default setting presets are low-key terrible, either heavily downscaled or just not running smooth.
On top of that, if Vibrant Visuals doesn’t run too well, the responsiveness, controls, building-and-breaking bugs and everything takes a very noticeable hit.
My settings don’t use high settings, but I think they work much smoother and look pretty great at the same time.
Framerate limit: 50/55 FPS. Not quite 60, but the game seems to sit around 40-50 inconsistently and constantly varying otherwise. Setting it to 50 gets the smoothest experience I’ve managed to find so far.
Framerate note: Unlimited FPS is the least stable fps setting. Setting it to locked 60 will feel better than Unlimited as far as I can see
Shadow Quality: Low
Cloud Range: Medium
Volumetric Fog Quality: Low
Reflections: Off
Resolution: Native. I was so glad this option was here, because oh my goodness the automatic scaling mode on S2 looks awful.
Render Distance: 16 Chunks
Render Distance note: This does have a huge impact on Vibrant Visuals performance. If you don’t mind low RD (for me, closer fog can make it feel like I’m more of an explorer sometimes). 10/8 chunks can sometimes push VV to a smooth 60fps.
Render Clouds and Fancy Leaves on
I also find the default brightness way too bright on the S2 screen and have it set to 70%.
Hope this helps anyone else who was definitely not expecting that default experience…
Edit 1: You can turn off Vibrant Visuals completely when not in a world from settings. Thanks to TabouletVR in comments for that. Setting the framerate to unlimited in Simple or Fancy mode here will give you up to 120 FPS as well as 28 smooth chunks!
Further edits: Small text changes and correcting info