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Because that would be good for the consumer. They make more money on digital only, you don’t actually own the product, and you can’t resell it.
It’s a corporation’s wet dream.
The best way to handle it would be to keep the core game files on a physical card that loads into RAM, and download the assets to the local drive.
The game-key cards can actually be borrowed or resold, it just doesn’t have the game itself on it.
Until Nintendo says they can’t.
It’s even worse. All the people who defend the physical editions do it because when servers close, they can still play the game. A game key card is just a glorified digital release. When the servers close, you’ll have a piece of plastic.
This is partly the case for any game that receives significant updates as well. Your disc/cart contains 1.0, but is that the version you will want to play 50 years from now when you can’t download updates anymore?