I have physical versions of both games. The only downside of game cards is longer loading times; 50% longer sounds like a lot, but when the loading times are ~4 seconds from internal memory in Bananza, then the game card gets the job done in ~6 seconds. During gameplay there's no difference.

Switch 1 game cards load a little faster on Switch 2 than they did on Switch 1. Around 20% faster, but that will be hardly noticeable when a lot of Switch 1 games have loading times under 5 seconds.

...

On topic: Hamaguchi latches onto what will be the go-to excuse for many third party developers. Of course it's bullshit because the logic has more holes than Swiss cheese, but that won't stop gullible and/or stupid gamers from falling for it anyway.

Let's assume his logic is valid. Why not offer users the choice then? If you don't mind slower load time, play it on cart, if you want to faster load time, give the user the option via programming to install the game from the cart (or relevant content from the cart to speed it up).

Option 3 design your games in such a way that loading isn't boring and appears like a loading screen, kind of like Nintendo do.

Anyone you can lead a horse to water but if it won't drink it, let them stay in denial and let them loose money.

Hamaguchi's reasoning concerns loading in the sense of texture streaming during gameplay. But you are right, a partial installment of data from the game card would help here, just like Xenoblade Chronicles X on the Wii U had an optional partial installment to improve streaming of texture data.

Misread the OP. Sorry.

"Please accept Game Key Cards because our FF7 games will be on them and we would like you to buy them".

FF7 is one of the very few that actually makes sense to put on a Key Card. Game Cards currently max out at 64GB, and FF7 Remake is measuring around 90GB on Switch 2.

Unless Nintendo hops on making 128GB cards but can't imagine how much those would cost developers.

Reminds me of the time when people wondered how big the mandatory download for Persona 5 Royal on Switch 1 would be when the game weighed in at around 40 GB on other platforms. The full game was put on a 16 GB game card on Switch 1 with some room to spare (file size of ~12.5 GB).

So would FF VII Remake fit on a 64 GB game card? Yes, there's no doubt about it.

But then it costs dev time to compress it properly, leading 3rd parties to conclude that porting to Nintendo consoles is not worth the trouble.

Maybe i should wait for a switch 3 instead

I played through Cyberpunk 2077 on Cartridge and didn't have any hiccups whatsoever. The game plays just fine, and I believe CP2077 is pretty much as highend as it gets on Switch 2. So with that example in mind, I just don't buy the BS excuses from developers and publishers. I think they are either lazy or greedy or both.