This. Those 32GB are only important if you buy full retail games in the eShop (something the 'normal' customer wouldn't do, since you get physical Gamecards in the shop) and then, even 64GB would be a joke. The PS4 needs you to install your games, so they *had* to provide at least 500GB, which is enough for 10-15 full sized games games, but with the Switch, it's different.
I think Nintendo took a hard look at their data with Wii(U) and (3)DS and saw that the vast majority of users still buy retail. And if you buy retail, you would have no problems for even 5 years and 30 games, because you just download patches and firmware updates and you just need space for saves.
In the end: compared to the 3DS or Vita, this is a massive, massive push for more storage. And the enthusiast can get a lot of storage for a nice price.