Except that you can buy games in a local store and play them on your Switch. When was the last time you bought an app in a convenience store and then installed it on your phone?
Do they skate because users can pay more to get a version of the hardware that has that capability?
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.
Perhaps, yet despite that the Apple app store is considerably more open in almost every other way.