This is a very logical idea but, man, Nintendo is rather blatantly trying to steer things towards the all-digital future. If I ever get a Switch 2 I already figure that I'm going to have to increase my digital purchases significantly unless I want to just miss out on tons of great games. Now it will be a question of whether it makes sense financially to not do that.
Now how is this going to affect Game Key Card prices? Are they going to be the higher "physical" price? Ironically that seems like that would kill the format. You can imagine physical game enthusiasts willing to pay a premium but why would anyone pay extra for what is essentially a digital version? But then if GKCs die to push people towards digital purchases they accomplished their goal.
Of course the true result of this is that physical media is outright killed. Then the prices go up. Then games you "bought" become rentals. I feel this has always been inevitable. It's just unfortunate that Nintendo is so aggressively putting their thumb on the scale after the Switch 1 was actually a very good system for physical releases.