It's just typical Nintendo. So worried about piracy, they're willing to go to extreme ends while not actually solving the issue. What will this really solve? Someone will grab a Switch game, maybe even already pre-owned or on sale, dump teh ROMz, sell it on, and the buyer is fucked. The ROM is still dumped, and someone with a hacked Switch is still going to play it. Sure, it won't be a massive problem, given a few guys will dump ROMs, then the rest of the pirate crowd will just get those dumps, but still, it's pretty clear whoever ends up with the cart used for dumping is the real victim here.
I'm fine with companies protecting their IP, but Nintendo always seems to want to shoot themselves in the foot while doing it.