It's not handled by Nintendo

Control works very well, and looks amazing in portable mode.  TV mode is serviceable, but the TV I have my Switch docked to does some odd things with darker colors when streaming Netflix or Hulu.  So if your TV does something like that as well, you will see it in your game.  It is only streaming that my TLC Roku does this with however, anything running on native hardware does not have this issue.  My other TV does not have this issue either when streaming, so it really depends on the quality of your set.

This is on my home wifi connection however. The real test will be tomorrow when I try it over 5G and LTE hotspots respectively. Even LTE has some great speeds in certain locations. But around my house, even 5G at full bars clocks in at 5 to 16 mbps downloads, which makes it pretty unplayable.

5G and LTE speeds around my work average about 200 and 80 mbps respectively, so I expect some solid results for potential portable play. Will update tomorrow.

I think that Nintendo might be hesitant to move everything to the cloud and end physical or downloadable releases because doing so can essentially negate the need for future consoles, plus it can make the performance of their games much more dependent on connection speeds which is something that Nintendo probably won't want to do so hastily given how rock-solid they want their gaming experiences to be when it comes to stability.

That said, I do think that Nintendo is likely to release a pro model of the Switch in the next couple of years and I am hoping that it will utilize Nivida's AI resolution upscaling technology that can basically put it on par with the PS5 and XBSX in terms of graphics. The streaming option to the cloud may be an option that Nintendo provides that can help to keep the older Switch consoles relevant for those that don't want to upgrade and it can give Nintendo the ability to dramatically increase the graphics performance of the Switch, mid-generation without totally alienating the owners of the original Switch.

I think that fans would be a lot more accepting of seeing new releases move to the cloud if it's 5-6 years after the console launch and Nintendo is giving owners of the original Switch a way to play new games that are coming out. For owners of the pro model, new games can be streamed as well or can still be owned physically or downloaded if users would prefer.

I could totally see Switch successor getting a bunch of PS5/XBS games through the cloud. This pretty much solves the lack of AAA third party games on Nintendo if it happens.

I think some people might need to actually see this to wrap their heads properly around it:

At the 23 minute mark, the guy gives his impression on latency (really good):

There could be dozens, even hundreds of games that aren't on Switch put onto Switch like this. CONTROL with ray tracing effects will make even a PS5 sweat. And with 5G proliferation coming even portable play is not out of the question. Looking forward to hearing 5G impressions (people can just use their 5G phone to create a WiFi hotspot for their Switch). 

Most Nintendo games use p2p protocols, you are dependant on the people's internet you match up with.
Join that together with the shitty wireless connection in portable mode and you have a recipe for greatness.

https://oatmealdome.me/blog/splatoon-2s-netcode-an-in-depth-look/

https://www.reddit.com/r/splatoon/comments/a4qby3/how_nintendos_online_works_why_its_p2p/

Nintendo could very easily just had a deal with this Ubitus company and get a collection of some number of games and offer it as a high end Nintendo Switch Online sub.

Say $7.99/month gets you SNES + NES games + Your choice of one of several streaming combo packages

1.) Fantasy Package - Final Fantasy XV: Windows Edition, Final Fantasy VII Remake (April 2021), Resident Evil 7, Tekken 7

2.) Sports Adventure Package - EA All Access, Madden NFL, console FIFA, Star Wars Fallen Jedi, Star Wars Battlefront, NHL, Battlefield

3.) Shooter Package - Older but still recent Call of Duty games, few other Western IP.

That wouldn't be a bad option, it's a way for Nintendo to create a higher tier sub service and they don't really have to build the infrastructure for it.

Let’s hope so. Microsoft would probably give them a great deal on Azure. Who knows what they could get in return.

Ubitus, the company that handles the Switch Cloud games says they are will be bringing more titles from many other top publishers soon:

https://markets.businessinsider.com/news/stocks/ubitus-partners-with-505-games-to-release-control-ultimate-edition-cloud-version-on-nintendo-switch-tm-in-major-markets-worldwide-1029735742#

In addition to 505 Games, Ubitus is currently working with numerous industry-leading game developers, aiming to bring their best games to the Nintendo Switch™ shortly.

Shrugs, don't see anything wrong with any of that.