I was really hoping that Nintendo was going to remedy the storage problem by having something like a "portable playlist" feature, where you can organize games into a playlist that essentially relegates certain games and all their content to portable memory.
I didn't know if such a thing was technologically possible, but I was hoping Nintendo wouldn't set their digital storage back with the Switch. Unfortunately, looks like they will. According to rumors this was not due to a potential system crashing but because external storage would make Switch look less portable and clash with marketing messaging. So hopefully, external storage isn't impossible for Switch.
Either way, SD card storage does grow every few years, and become cheaper. There are 256GB micro SD cards out right now that will be affordable in a year or two. So storage could be rectified in time through simple tech progression. Doesn't help anyone right now, though. I've heard the theoretical limit of regular SD cards is 2 terabytes. If that's possible in MicroSD, it will be enough.