Game developers used to optimize or compress whatever its called to get down file sizes for stuff like game cube or n64, but now they just aren't allowed to do that cuz publishers want more money.
Install card, play card. Space isn't an issue. They don't want to spend the money. Plenty of switch games have required downloads because they can't fit the whole game on the card. This is just passing the storage cost to the consumer by making you download all of it vs some of it.
Star wars outlaws loading issue is also bs since some switch games, again, require extra data. Just install required data to the console from game card for faster loading. They say cost wasn't a factor but it totally was. Lazy dev work.
There are so many easy solutions to these problems they aren't bothering with because lazy and money.
For me personally, I will just not buy game key cards at all. If it's a good game and comes on a game key I'll just opt for all digital. Having said that I will have to be very very picky about which games I purchase digitally as to try to balance storage space, which literally translates to me spending less money on games for Nintendo switch 2. Nintendo really blew it with this system and shot themselves in the foot with their design choices.
Cartridges have limitations that make them incompatible with some Nintendo Switch 2 games. Final Fantasy 7 Remake Intergrade is too large to fit on a standard Game Card. Instead, it uses an internet-dependent Switch 2 Game-Key Card to the disappointment of physical media supporters.