The chatter across a lot of Nintendo news sites is that BigN is console banning Switch2 consoles that use the MIG Switch. They get evicted from all online services, and any future digital games.

Users who try to factory reset to get around the console ban... ...find their Switch2 can't login with any account. Because it can't phone home to Nintendo Online services.

Okay, I knew that. The Dreamcast comparison made me think it would chew up the game card slot or something.