That’s the game cart size. The switch 2 comes with 256GB built in and is expandable.
That’s said, the Switch was also expandable. I put a 256GB card in and like 55+ games later (only 7 are digital though) I still have plenty of room. Switch/Switch 2 games aren’t nearly as big as Xbox or PS5 games are. I’ve not even cared about how much storage I’ve got free on my Switch in forever… where as my PS5 got a 2TB upgrade and I still have to keep an eye on it from time to time.
It’s always a value proposition. If I feel like a game is a better value/ROI that whatever else I was going to spend my money on, I’ll still get the game.
Sure, I’ll have more limited number of purchases due to having a cap on discretionary spending, but if it costs more for all options, it’s different math that games being more than, say, a night out or a movie or whatever. I can easily say, I’d rather spend $45 for a few beers and dinner with friends than an $80 game, but if I get 100+ hrs of enjoyment out of a game and that dinner goes up to $80 as well, the game makes more sense. Or maybe having them over for some couch coop and we just get a sixer from the store instead.
Everyone will make this decision differently and that’s okay.