A key part of the problem is that the game isn't actually bigger than 32GB. It's on a 16GB card, and it would have fit on 32GB, but the devs chose to use a cheaper card and force you to download the rest.
That IS a problem, because one day you will put the cart in the slot, try to play and the download servers won't be online any more, and the physical cart will be useless - and all because the devs cheaped out on the cart.
That IS a problem, because it isn't caused by the Switch having a small memory. It's caused by devs cheaping out on cart costs and forcing you to deal with the consequences. If the game was actually larver than 32GB, then yeah, fair enough (although that still wouldn't be ideal for the same reasons as above, but at least it wouldn't be being caused by cheap ass devs).