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Regarding the storage 

If it comes with only 128 gb of storage it can be as well as having storage only for the SO and saving files because 128 is as good as nothing considering the size of games nowadays...

I believe people are forgetting with the size of games getting bigger they will need more expensive cartridges. What I believe it will happen is they will no longer be able to fit all their games in cartridges, likely needing to store part of the games on the console which will need more storage 

I don't know how much it costs in your countries but 1 TB SD card from SanDisk can go as far as 140 USD. 512 are around 80 USD. I get you guys are thinking "but you already is buying SD Cards for base Switch", well yes but a simple 128 card (20 USD at time) was enough for my Switch with games being smaller and cartridges often having the full games. The idea everybody already has SD cards and taking from granted people will happily keep buying them is misguided because Switch games are much much smaller than the current AAA third party game sizes. This will no longer be true 

Unless devs start compressing the games better I fear that I will need at least 512 GB for a library even uninstalling games periodically. This is the storage of the least expensive PS4 model way back in 2023

Having this storage in the base system would be fantastic and make me save tons of money. I hope this rumors are true. I'm sure Nintendo can get internal storage for much cheaper prices than the final consumer could ever.