Ah, good point.

This is true of the switch, but there are versions of both the PS5 and Xbox Series that don't have the ability to play physical media.

Do they skate because users can pay more to get a version of the hardware that has that capability?

The method of distribution isn’t the point at argument here, is it?

For this argument to participate we have to assume it implies that people could develop, compile and deploy Switch games to commodity memory cards and then install them.

Otherwise it is the same behavior, from the perspective of prohibiting competition.

Games for which Nintendo has chosen to grant licenses and manufacturing to produce the cartridges and been paid for the privilege. It's exactly as limited as the online store, but sold as plastic instead of bits. There's no homebrew Switch games at your Best Buy.

What does that change? Only advantage I can think of is that you can share/resell physical copies