Better than a code-in-the-box approach for those who like a physical collection that they can trade with friends or sell later... but it also means that preservation is going to depend on Ninty sustaining servers with the game data you download.
The virtual card system is surprisingly progressive from Ninty (though you can "game share" with at least one other console already on all platforms), and I wonder if they've got data to show single households own multiple Switch consoles?