Why would I pay more for a Switch version? I simply wouldn't. Nintendo need to release a SKU with more internal storage, and quickly. A whole lot of smartphones have 2-4 times as much storage today than the Switch does. Mine has 128 GB, for instance
Which model and how much did it cost?
Mine was quite expensive, I bought a Huawei Mate 9 Pro at launch, but both Huawei and other manufacturers now sport at least 64GB of storage in their models that fall into the same price range as a Switch. Even phones with 128GB of storage can be found at around 50$ above the Switch price.
Digital is growing, especially for consoles, its been huge among PC gamers for years already (which you know, of course, since you game on PC quite a bit). As such, Nintendo need to adapt to the market, if adapting to the market in this case simply means adding more storage; then just do it. If the gain is better support and more software sales, it's easily worth it. Their failure to approach tech and engineering solutions that the market craves or even demands has been their achilles heel since the N64 days. The old argument that one can simply purchase storage one self doesn't really help, like I've mentioned, I find it unfair to expect the consumer to pay for basic functionality that should come out of the box in a modern gaming console, especially when they charge so much for controllers and peripherals as is (my Pro controller cost around 100$ and the base unit itself cost 400$). Even a pair of Joy-con's cost around 100$ here. Not to mention the fact that both Sony and MS offer SKU's of their consoles at the same price as a Switch that houses a 1TB drive.
In the golden age of digital media, skimping on storage space is simply a bad choice. They were forced to cut away the basic SKU of the Wii U as well after a short while, due to the limitations in its storage capacity and the severe limitations this put on the machine itself. If consumers and developers want a slightly more streamlined experience, this is hardly an outrageous wish.