So what you're saying Nintendo checks every game that you run every time you run a game to check if you have it? And they do this for all 18+ million Switch owners? I'm not saying they can't do this but they have no reason to go around and start randomly checking if people are running legitimately owned games without a reason. If you boot a game that's not released yet, like Pokemon Sun and Moon, then of course they can check who ran what and apply the appropriate bans. But loading an .NSP game that is going to seem legitimate from Nintendo's side unless they have a reason to believe it was obtained illegally will not flag Nintendo's servers as something suspicious. I agree, the risk is always going to be there whenever you mess around with backups, but cartridges are inherently more dangerous to run than digital downloads. If someone were to start playing their pre-installed Mario Odyssey, it'll look no different than someone who bought Xenoblade Chronicles 2 or someone who illegally installed Splatoon 2. They don't have the time and money to cross-check through everyone's logs of digital games they played with games that Switch legally purchased.