If this was true we wouldn't have endless threads complaining about lack of support from third parties and port begging.

Thanks for sharing! Well that really sucks for US versions then loll

Thats basically saying:

"Nintendo makes consoles for themselves and dont care about 3rd party."

But I agree, Nintendo sees themselves as software developers 1st, and dont honestly want too much competition on their hardware.
Its why they often times have "issue's" (eg. lack of CD drive, weaker hardware ect), they just dont care about the loss of 3rd party, and might secretly not want too much competition for their own games on their hardware.

Nintendo see's themselves as software developers that make hardware.
Sony see's themselves as hardware makers, that also make software.
Microsoft see's themselves as a service provider, that also makes hardware.

The 3 differ slightly with their approuch to consoles.

They are in higher quality. The camera is locked in cutscenes and there's no need for AI so that frees up resources that can be used to push better graphics.
Most visible in close-ups of character models.

Some game will still have intro cutscenes that are pre-rendered but nearly everything else is real time. Most of the pre-rendered stuff looks worse than real time, simply for the fact that they have a fixed resolution and are always compressed in some way (some more than others). 720p videos can be found quite often in games that use pre-rendered videos and while that might be fine for base consoles, it will look pretty bad on PS4Pro and Xbox One X. Wouldn't happen with real time cutscenes as they will be rendered on the fly at the game's current resolution.

I prefer physical editions that come with a code in the box, if the cart is playable without the code.

More on topic with this thread: One example of a game that wouldn't fit uncompressed on the cheaper medium = "o noes the switch iz doomd!!"

Flash storage is drastically superior to discs for a variety of reasons. It is more expensive, yes, but it offers a tremendous performance increase. I do agree, in this day and age where you can buy 32GB SD cards in bulk for less than $5 ea (just based on the very first Google result I found) - a markup of less than a dollar from the cheapest 16GB price I found - that there's no reason it should be as expensive as you claim in the OP, but honestly I doubt it actually is as expensive as that, anyways.

Plot twist: "Physical" version of MK11 for Switch will come with a code in the box.

The issue isn't so much fitting it on physical media.. Its the cost of the carts.  Its an inevitable issue with a portable based system. Costs will come down over time. 

Quick question: isn't hellblade digital only on every platform?

Original release, yes. It's since gotten physical releases.