Bingo

Nintendo should take this $10 hit, instead of the consumer.

Carts don't use NAND flash though.

I said that liek three times and used other examples where even the game is cheaper (i.e. FIFA18( on Switch in Aus, but some of these guys are hung up on ONE REGION.  There is more to it then just cart price.

I am pretty sure they do.  Unless they use NOR which would be just a bit looney.  

It's just an MROM chip, still uses NAND flash memory technology.

I've read somewhere that the manufacturing cost of the 16GB NS cart is estimated to be around $7. So that extra $3 could come from the shipping/packaging/distribution/licencing etc. I think people forgetting that this is not a standard SD card or BL disc, therefore, by default, it will cost more. On the other hand if the game fully fits on the cart it doesn't require extra space on the system itself as access times are vastly superior to any disc based media. Considering the portability factor, I don't think that Nintendo had much choice to begin with. The only other viable option would be to add extra space to the Switch (256GB for example) and go with digital distribution only, but with current technology that would increase the price of the system by around $100 and surly, ditching physical media, would leave many consumers, to put it mildly, unhappy.

https://en.wikipedia.org/wiki/Mask_ROM
And:
https://en.wikipedia.org/wiki/NAND_gate
And:
https://en.wikipedia.org/wiki/Programmable_read-only_memory

Definitely the game card format. Luxury gaming indeed.

I don't think Macronix make ROMs anywhere close to a 32GB size. Check out their ROM sizes (note the small 'b' to indicate bits not bytes).

http://www.macronix.com/en-us/products/ROM/Pages/default.aspx

The Switch cartridge storage is likely rewritable for the chip itself but the cartridge pcb would prevent write access. However I would totally accept that there is a difference between flash memory that is constantly rewritten and flash memory that only has to be written to once and read back many times. Still the exact same technology though and I doubt a huge difference in price. It's probably just the difference between more extensive batch checks or one using a manufacturer's product that performs better for a high number of read operations compared to another that works well for a higher number of write operations.  Actual ROM chips nowadays are more bootstrap type chips as they are very expensive for their capacity. If the Switch actually used read only storage for its cartridges we would be looking at manufacturing cost being much more expensive well beyond the $5-10 we are debating for a 32GB cartridge.

Also hasn't Nintendo been using rewritable flash memory for a long time. I thought some of the 3DS games had cartridge game saves by making some of the flash memory rewritable for game saves. I don't think the Switch does this probably for increased protection of the software. 

Alternatively it may be that smaller Nintendo Switch cartridges can use ROMs but larger 32GB cartridges are forced to use rewritable flash memory.

Back in the day Nintendo also charged royalties on the cartridge itself and defined the print quantity. Or perhaps they expect less sales so need a higher tag to have roi.