What would make the service more acceptable is if they had better offerings than NES games so something has to eventually give because slapping a low price tag means you getting a lower value in the end ...

Who wants to pay for no added functionality or very old games that are only available for a month ? With XLG and PS+ there is something in each that does better than the others. With XBL, a lot of Microsoft's own content offers online functionality but it gets better since they offer "backwards compatibility" games in their GwG program too and PS+ offers an amazing desirable selection of both high quality and valuable modern content all the while the Switch Online doesn't excel in anything ... 

Heck, offering cloud games bi-monthly or at least per quarter would make the Switch Online a lot more attractive than it is now ... 

Calculators these days are able to emulate NES games. I don't see why anyone would pay good money for some random NES games each month.

Isn't Nintendo's paid online service meant to actually improve online functionality, like dedicated servers, reduced lag, more and better communication options, etc?

Well can't disagree, even though PS+ and XBL are quite more expensive, Nintendo could give some gems of WIi and WiiU since they are discontinued and not really seeing much sale anyway.

That isn't the right way to do it. You first improve your offering to then request higher pay. If you get away just charging for more there is little incentive to improve.

Actually if costumers would behave the right way, if Nintendo increased the price without increasing value they would just stop paying for it.

I want that crap. 

I have every console. Let's compare.

Price-
Nintendo: $20 a year
Xbox: $60 a year
PSN: $60 a year

Games-
Nintendo: You get random NES games monthly that you lose when you stop paying.
Xbox: You get two Xbox One and two Xbox 360 games per month. You keep the 360 games forever, even if you stop paying.
PSN: You get a variety of PS3, PSV, and PS4 games.

Cloud saves-
Nintendo: Supports most games. Disappears after a certain time when you stop paying.
Xbox: Unlimited automatic cloud saves for everything, for free. If you log in on a different console, your saves is already waiting for you. You don't have to do a thing.
PSN: Cloud saves with PS+. Disappear after a certain time when you stop paying.

Communication-
Nintendo: voice chat in some games. Some native. Some via app. No messaging or invites whatsoever.
Xbox: Voice chat, party chat, chat with people playing an entirely different game, voice messages, video messages, text messages, updates on what friends are doing, screenshots, videos, achievements, etc.
PSN: Mostly the same as Xbox

Clubs-
Nintendo: nope
Xbox: Automatic "game hubs" for every game. If you play the game, people can see your content. You can see theirs. It's optional. User created clubs.
PSN: Mostly the same as Xbox

Broadcasting-
Nintendo: No built in option to broadcast to others.
Xbox: Supports Twitch streaming and Mixer
PSN: Supports Twitch

Miscellaneous-
PSN and Xbox One support various ways of letting others control the game you're playing via the Internet and they have dedicated servers.

Nintendo offers a 10% reward for every digital purchase (ie: but a $60 game. Get $6 to spend on something else). All companies offer huge digital discounts with M$ and Sony offering the biggest price cuts on top tier titles and additional discounts for subscribers.

That's the gist of it. There's a few other things like the Xbox One app that lets you use your phone as a controller or keyboard or watch digital captures from your friends or the PSN app that lets you buy games or message via your phone amongst other things.

There's also a robust app store on Xbox with everything from Kodi to a Kinect baby monitor. It all depends on what you value.

For me, my Switch is a personal portable gaming machine so I'm happy not paying for Nintendo's online service until they make some improvements. I just miss the days of playing Mario Kart online. 😥

it may surprise you to learn that i have never owned an original NES console, nor was I alive during the time it was relevant, and as such i have never heard of Blaster Master. i also have played Zelda II through VC before and agree that it lacks any of the merit that other Zelda games have. this really isnt a troll post, its just information about the Online Service

Never heard of Blaster Master? Sounds like you’re the disappointment.

In all seriousness though, check it out. It’s a good game.

It's not only the amount of NES games which is bad with this service.

1. Nintendo promised with Nintendo Switch Online exclusive offers for members. The only offer is the two NES controllers since the service started in September 2018.

2. Beside Splatoon 2 there has no other game been added to the online app since May 2017. WTF? Only voice chat has been added to MK8D, Mario Tennis Aces, ARMS and NES NSO.

3. Obviously no dedicated servers for Mario Tennis Aces, Smash Bros. etc. Sometimes unplayable due to lag. Only Splatoon 2 seems to benefit from dedicated servers.

Personally, I think that the NES side of the service is a bust because they're not really offering anything new, even though they really can't at this point. Most of the console's best games will never see the light of day, on VC or whatever other service Nintendo offers:

-Bionic Commando. Capcom wanted to do it, but Nintendo outright refused to let them.
-Contra: for whatever reason, the most widely-beloved entry in the entire series has never been released on any service (the arcade game was released, but I never thought that it was as good).
-The Capcom licensed games: Little Nemo, Chip and Dale's 1-2, Ducktales 1-2, Talespin, Darkwing Duck, Willow, etc.
-Tmnt 1-3. The first game WAS released on the Wii VC, for a limited time and at somewhat of a premium price. The license has shifted hands since then.
-The MacAdventure series (Shadowgate, Deja Vu, Uninvited): now, these games COULD be released, seeing as how Shadowgate was released for 3DS in Japan. I doubt that it will happen, though.
-Games made by companies that either no longer exist, or have left the industry. Vic Tokai--who did Clash at Demonhead, Golgo 13--for example.

I really don't think that there is a way for them to make the NES exciting again. Between the Wii/Wii U/3DS VC and the NES Classic, they've sort of overplayed their hand. There isn't much left that they could realistically release that hasn't been released a million times over. I'll still beg for a rerelease of Nightshade, though.