Not to mention that the savings from an all-digital Switch 2 would be pretty minimal compared to their counterparts in the PS5 and Series X/S line-up. A Switch game card reader is probably a lot cheaper than a 4K Blu-Ray driv.e

Plus lots of Switch 1 owners and a card slot is important via BC.  

Take it with a grain of anecdotal salt but my purchase of 2077 was 100% because they ponied up for a big cart and made their game fit on it.  I have only played a couple hours of the game the majority of my play time on the S2 has been Splatoon 3 and DK B.  I really only bought it because it looked good and to support their decision.  For me it was a reward.

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Would not be surprised if sometime later on this generation Nintendo releases a digital NS2.

I need someone to confirm this, but from what I've heard the transfer speed of Switch 2 game cards are effected by size. 64GB cards are 450MB/s which half the speed of Micro SD Express cards. To get the full speed of the NAND the card would need to be 128GB (900MB/s). If this is accurate, smaller cartridges would be an issue because they'd be too slow. 16GB cards would be just above Switch 1 cards in terms of speed. There is already a noticeable difference between the currently offered cartridges, SD Express cards, and internal storage in terms of load times.

Good. The whole fake cartridge situation is absurd. Either allow physical media or go full digital and accept the consequences, but trying to fake it to both publishers and the public was absurd. Hopefully now the publishers adopt fully physical releases, since it's clearly what the userbase wants.

Whatever the reason is for 64 GB cards being the only option right now, it's probably a good reason. At the same time, we've got Marvelous putting their games on game cards. So when a small third party publisher can afford these cards even when most of the space remains unused on them, then it's confirmed that every publisher that is the same size or bigger than Marvelous can afford them.

All the evidence is pretty straight-forward so far. Game cards are not too expensive for publishers. Gamers know the difference between game cards and game-key cards. Game cards lead to notably bigger sales than game-key cards.

Correct. I'd rather pay a bit more and get the entire game on cartridge, than have it be cheaper with only a fraction or nothing on there.

And in those cases, I'm not going to buy the game anyways, so either they gimme a proper physical version, or I'll leech off of my friends steam library and

pay nothing

Nintendo created the "game key-card" branding and demanded those to be clearly identified IN THE FRONT of the box to do the exact opposite of "trying to fake it", but trying to do something good and getting criticized for it, is just natural for Nintendo at this point.