So, to start with: the console. As we all know, the Switch 2 is a $450 console. It has 256GB of storage, a 120Hz display with HDR, and it has power comparable to a PS4 in handheld mode (and closer to an Xbox Series S in docked mode). And also a dock.
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Getting a Switch 2 at launch isn't worth it unless you don't own a Switch 1. The advantage the Steam Deck offers is that it already has a massive library and PC freedom, and a majority of the Switch 2's launch library is Switch 1 games.
Switch cartridges are far more expensive to produce than stuff like Blu-Ray discs, and they only get more expensive the higher capacity they are. According to the Switch 2 Direct, Switch 2 cartridges have a higher data transfer rate, so they might be even more expensive.
"Game-key" cartridges are a thing now, replacing the empty cases with download codes that plagued the Switch 1. While they still require a download, they're also able to be resold and returned.
And they're far more cheaper, since all they have is the license.