Free games? You still need to pay for the subscription, right?

Yes but that's for being able to play online games. Discounts and free games is just extra incentive.

Maybe if you start doing wrestling moves in the robot suit, you may break one of your joy cons? Seems like the simple fix for that would simply not to do wrestling moves when you are wearing a cardboard suit with electronics stuffed into it, but hey, thats just me.

The same logic goes for Nintendo Labo too. You pay for the game, and they give you the cardboard designs for free.

Lets get right into it. Nintendo Labo is meant for 2 thing and 2 things only.

No, the purpose of this entire project was already expressed multiple times by Nintendo before and after the reveal. The entire reason why this exists is because they want to attract a younger audience in order to expand the system's (currently overly young-adult male) demographics. 

1) A very creative way of selling the consumer MULTIPLE add ons for their game console, that they have absolutely no need for. AKA Cash Grab.

By that definition the Playstation 4, Xbox One, PSVR, and pretty much everything else gaming related is also a cash grab. You have absolutely no need for any of these things. Also lets get on to the add-on aspect here. No one is being forced to buy add-ons that they don't want, people that want this will want it because they enjoy putting it together and interacting with it. It has absolutely no impact on you if you are not into that type of thing. Another add-on that you do not NEED when you purchase a console is games, yet you invest in them because it is something that you WANT for entertainment.

2) Braking your console & controllers. Yes, the more the consumes breaks controllers and game consoles, the more they will have to replace those controllers and consoles. AKA SALES SALES SALES. 

Sorry but I hardly see how this could destroy consoles or the controllers, unless you use the product in an unintended way (like the suggestion by the OP in some of the later comments about how his friends might wrestle or play-fight using the robot kit) but that would hardly be Nintendo's fault. If you smash your controller to the ground when you rage quit a game that is hardly the console makers fault for you being careless with a product you bought, similarly if you are playing on a PSVR with the Move controllers and you do not pay attention to your surroundings while in a tight space, as per the warnings, then you run the risk of damaging your controller by knocking it into something, again it is not conspiracy by Sony to get you to buy more controllers it is just the player being careless. Also, none of these kits have you placing the console in a highly elevated position and outside of the robot (and that one falls in the category that you will damage your Joy-Con if you do not use the kit as intended) I do not see anything that has you placing the Joy-Cons at a high elevation. 

 You have to applaud Nintendo though. Their consumers eat this stuff up and I see sales of the Labo to be right on point with the sales of the Amiibo. (My sons 12 Amiibos are collecting dust right now). 

I find the point about the Amiibo's collecting dust quite amusing. What did you expect from a set of collectible figurines that at maximum you tap to unlock something or save some stats to? That would be like buying a decorative painting and being disappointed that you cannot fly with it.

As for Labo, people that are interested will spend time to put them together, play some of the mini-games they come with, and then after they will either put them on display for a little while, experiment with them, put it in storage, or throw it away and then move onto another kit or to something non-Labo related. It is not really that different from other toys or creative activities geared towards younger kids and Nintendo is not making it out to be something that you buy to enjoy for years.

I've duped by Nintendo one too many times to fall for this again, are you planning on purchasing Nintendo Labo ? 

You have a very inaccurate view of the word duped (ie tricked or deceived). Buying a product, in the case above the Amiibos, and getting exactly what you paid for is not an example of being duped. If Nintendo sent you an empty box, or the figurines NFC did not work (and Nintendo refusing to acknowledge the malfunctioning unit and sending you a replacement), or the figure that you purchased did not reflect what was advertised then those would be examples of getting duped. The worst you can say in this situation is that you bought some figurines that you did not want and hence have no use for (at which point you should be looking to lay blame at yourself) . 

The Labo isn't a cardboard box. It's a video game that uses cardboard to create different gameplay options. Why is it so hard for people to notice the difference?

Using the same mindset, you could say that people spend thousands of dollars on cars, that are just metal boxes. And that makes no sense at all.