This is bad. Because,
a. Switch 2 can get bricked when Nintendo wants you to upgrade to the “Switch Tree.”
b. If you discover a purely unused switch 2 decades later it will be useless. It’s bricked unless you get that Switch 2 update.
c. It all ties to that Nintendo bricking terms of service terms.
It’s pretty bad that it doesn’t work out of the box. I suspect someone will always find a way to hack them into being usable when Nintendo inevitably ends support for them, but it’s still shitty.
In particular for a handheld console.
I’ve bought consoles during business trips where I didn’t have reliable internet (and the goddamn Switch can’t even do sign-in to most hotel networks) and I would be pissed if I could not play it until I got home.
Let’s hope this is only for the first batch and that later ones will work out of the box.