Oh for sure, DLSS is the magic sauce that will make Switch 2 do amazing things, now that I actually know enough about it haha. But for Switch 1? This makes a ton of sense. Otherwise they pretty much will stop getting third party ports in the next 2-4 years for Switch due to those games (eventually) being exclusively designed for Series X/S and PS5. I'd imagine many that have ps4/xbox one versions will at least be possible to port to Switch 1, but some maybe only so with the help of the cloud. As long as cloud isn't replacing native versions that are possible, I'm okay with it, but the moment that happens I'll be against it too. I doubt we will have this issue next gen with DLSS though, seeing as Series X and PS5 won't be using DLSS (if I recall?) so the gap will be smaller that it appears spec wise between Switch 2 and PS5/Series X.

Oh, I don't know. Did you try? In the eshop the launcher is a free download, in the worst case it says to you, that you cannot try because you have Nintendo Online subscription.

digital or physical for me,

cloud will be in the future but just not right now haha!

They will, the way they did with ports and remakes.

Amazon and Google had no credibility while suggesting this new alternative in the gaming industry.
Nintendo won't have the same difficulty introducing this service to their consumer base.
The cloud was available in japan, i am curious to know the feedbacks and how it was recieved there.

In some sort i don't have any problem with the cloud being a kind of an alternative solution to offer to consumers so they can play decently next gen games on their potato.
BUT, It MUST be an alternative only for the current switch and it should not be bequeathed to its successor. If the exact opposite had to happen, third parties on Nintendo consoles will become a mere dream for further generations.

I just finished the demo. It works without the online fee, which is nice. And the game works flawlessly, to my surprise. How is it I can stream an entire game, but most Smash games kept lagging?

Cloud gaming should have no problems if your internet has low latency and you're the only one who is streaming and no one else is watching youtube or netflix.

Because Nintendo is incompetent when it comes to infra and cloud services and their games are most likely to be bad designed to multiplayer. This company must be small but have the correct know-how to operate gaming cloud business and the game itself must be well developed to run in a cloud service 

Yep it's "free"

No thanks. It's on my shelf or I don't support it. To me, this may as well be zero 3rd party games if this becomes the norm. Literally no point in owning the system.

Nintendo's online infrastructure has been garbage. If they want to make this work, it will have to wait until Switch 2. It will also need a ton of resources and planning.