Game-Key Cards not tied to accounts is a good news. Rest of the issue remain the same.
If/When the servers shut down, games won't be available for download ever again. Imagine if Steam would shut down their servers? But while Steam is timeless platform, Nintendo tend to come with a new platform for each system.
As for use of Game-Key Cards instead of Game Cards, it is basically a price issue. Nintendo Game Cards aren't cheep, and the higher the capacity, the higher the price. Therefore some games for the original Switch are partially downoadeable, or even almost entirely downoadeable with a Game Card that basically only serves as a physical Key for download.
Beside, many games require download of post release patch, in order to be fully playable. So even with games entirely on the Game Card, there might still be an issue, if/when servers will go down.
Game-Key Cards for the Nintendo Switch 2 are like physical game cards but without the game on them, and will prompt owners to download the game digitally. Now, Nintendo clarifies that they can be loaned or resold like regular game cards.
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