I remember when this MIG mod got released people were saying buying used would now be a roulette as Nintendo can spot the duplicated cart when it is used online and blacklist your switch. Not sure how often it ended up happening, but at least once it seems from this article.
Can't say I'm happy with how Nintendo is dealing with physical games, which means I'll need a really good reason to buy a Switch 2 myself. But Microsoft (and to a lesser extent Sony) are trying harder to kill physical sales and resale.
Nintendo at least have some skin in the game as they have the largest percentage of physical sales compared to Microsoft/Sony.