When the Xbox One was announced with always online DRM and was getting massive backlash, Sony famously responded with a short video which essentially won them the console generation:
https://youtube.com/watch?v=kWSIFh8ICaA
Then, a generation and a half later, Sony announced that they will be completely discontinuing the production of all physical games.
Here, Nintendo is using even weaker phrasing, saying there are "no plans" to ditch physical media, when, starting this console generation, they already started selling "Game Key Cards," which do not contain any game data, and the prices of storage are only getting higher due to the AI bubble.
Nintendo is just a publicly traded corporation trying to make more of a profit next quarter than they did last quarter. When push comes to shove, those profits will take priority.