Remember when you use to buy a Switch game and the game would atleast partially before updates, be on the cartridge?
Well imagine buying a key cart for your Switch2 and, you have to download the game from their servers from scratch. The game doesn’t download itself to the cartridge, but onto your Switch 2 consoles internal memory.
Now imagine getting a bad update and trying to delete some data including the update, just to play with the original games version.
physical Key cart games are treated just like they are digital which means you can’t revert the update.
Even if the game is saved onto your Switch’s internal you cannot legally play a key cart game, without the key carts inserted in your switch.
The game data is not stored on the key cartridge but on your switch’s internal memory.
$80 $70 Nintendo Switch 2 carts
The point is that you can still treat it like a physical game. So there are upsides in that you can borrow it to your friends or resell it.
If it is a game that gets updated often or requires updates to even play it (multiplayer games) then having the game data on the card is next to worthless anyways and just makes publishing the game more difficult because they can’t start manufacturing the cards until the game is 100% ready.
Nintendo’s audience goes for physical much more than the other consoles, much easier swapping cards than dealing with family sharing, a lot of their adult users collect games, and generally Nintendo games hold their value much more so being able to resell is important. So this is a compromise between what their users want and what they need for modern game development.
Slippery slope for sure if they start doing the same with single player games but there are valid reasons for them to do this, and the alternative is they just start forcing everyone to download all of their games which is even worse. MIG switch would never have been an issue for them if there just weren’t game card slots to begin with.
Of course end users should assume the store is going to get shutdown someday and their games will be inaccessible at that time. Nintendo needs to shutdown those stores so that a couple of generations later they can sell everyone the same games for the second/third/fourth time.