I haven't been this excited for a Nintendo console launch ever, and I've been around since the NES days. I feel like Nintendo has found the truest most honest version of what it needs to be in the modern era, with a unified platform that knows it has to differentiate itself from both traditional consoles dominated by Sony/MS and from iOS/Android smart devices, and actually has a convincing angle for achieving that this time around.
From your post it sounds like playing Switch with your kids, or letting them play it together to occupy themselves, is a big factor for you. So I don't get why the online paywall is a dealbreaker when it's clear from what we've seen it has strong local multiplayer features. Two people can play using the joycons out-of-the-box without needing a subscription to anything. Maybe three or more if you have more joycons and/or a pro controller.
32GB & "all digital world" -- I don't see this as a Switch issue -- it's a stubbornness on your part, sorry to say. Nintendo carts are small and very portable. You can store 24 of them in a carrying case
like this one -- about the size of a sandwich, very easy to travel with. Most Switch carrying cases also have slots for carts. I'd recommend saving that 32GB of space for "digital only" content. You can also throw in a $15 microSDXC card to expand it by an additional 64gb. Is it really so bad? Tons of people do this on their android phones.
At the end of the day, if the cons outweigh the pros for your use case, there is nothing wrong with simply waiting it out. For myself, while the value proposition is not a strong factor with the Switch and all the accessories and addons (like a MicroSDXC card) I'm going to need, I'm won over by the strong library (both launch and coming soon) and unique features of its hardware.