This card has two drawbacks as far as I can see. Firstly, there’s no loader to swap between games.
Secondly, it only supports its own format when you back up your own games. The games you download from the net aren’t compatible but it’s assumed the pirates would ‘repack’ their past releases to be compatible.
Here’s a question, would the Switch be oblivious to how the game is stored and download any updates? Do pirated games come complete with the latest available updates?
The problem is, several publishers don’t want to pay Nintendo for the larger storage cartridges. Many Switch games only have part of the game physically and you have to download the rest.
Diabolo III made a point of saying the whole game was on the cart for example.