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I heard a rumor on the internet, that supposedly Nintendo make 8gb and 64gb cartridges.
And the 64gb ones are like ~8$.

So instead of spending like ~8$ on a cartridge that can hold the games, they give you a tiny gamekey code instead, to save like 8 bucks.
Just raise the price of the games by the cost of the cartridge, and give full games on physical buy. I think most would prefer that.

OR  if you want to sell the Switch 2 versions, at the same price as say xbox/playstation ones that use cheaper discs, then just eat the price difference. Surely that would be a better move, like.... how profit driven are these people, to not see that this will likely drastically effect sales of their games (physical buys).