I appreciate this thoughtful thread, but I think it comes down to this: the games that would suffer from this card capacity limitation will not define the success or failure of Nintendo Switch.
Thats basically saying:
"Nintendo makes consoles for themselves and dont care about 3rd party."
But I agree, Nintendo sees themselves as software developers 1st, and dont honestly want too much competition on their hardware.
Its why they often times have "issue's" (eg. lack of CD drive, weaker hardware ect), they just dont care about the loss of 3rd party, and might secretly not want too much competition for their own games on their hardware.
Nintendo see's themselves as software developers that make hardware.
Sony see's themselves as hardware makers, that also make software.
Microsoft see's themselves as a service provider, that also makes hardware.
The 3 differ slightly with their approuch to consoles.
Necro-bump this 2020: http://gamrconnect.vgchartz.com/thread.php?id=229249
Bumb in 2021: http://gamrconnect.vgchartz.com/post.php?id=9047071