Update thanks to thethatfox:
Physical game cards may also not actually contain the game:
Nintendo Switch 2 Game-Key Card Overview
Game-key cards are different from regular game cards, because they don’t contain the full game data. Instead, the game-key card is your “key” to downloading the full game to your system via the internet.
Update 2: There is probably a difference in Game-key cards and card that contain real game data. So we don’t know right now how often these game-key cards are used or if nintendo is using them.
This is the craziest thing for me. Now buying physical means you cant install or play if Nintendos servers are offline. As it stands, buying a BluRay PS5 game means you can play it without any connection for most games - actual ownership of a game that cant be taken away unless they send people to your home and take it away.