When they announced a paid online component for Switch, I knew they couldn't possibly tie all their online features to a phone app. It makes zero sense.
Now, what they *may* do is tell people who don't want to pay for their online service that they can use a dedicated phone app that will handle their match making, etc.
I do not see Nintendo locking people out of multiplayer if they don't buy the online service. I just don't.
So Nintendo IMHO can still be seen as pro-consumer by not putting multiplayer behind a pay wall like Sony and MS.
That all said, it will take a hell of a lot of enticement for me to pay for their online service especially if they're going to be asking for Sony/MS pricing tiers-monthly, 3 month blocks, 1 year, etc.
Them making the virtual console library free or giving paid players different game system themed months for the length is the way to go, not monthly "free rentals".
Let's say Nintendo does a monthly "All Nintendo virtual console games are free this month" and then open that section up for all paid online members. This way, gamers would have a nice selection of games every month without Nintendo having to give away the entire backlog.
For example: January is NES month. All NES titles are open for paying members. February is Turbo-Grafix-16 month. March is Super NES month, April is Neo Geo month. May is Nintendo GameCube month. June is Nintendo Wii month. July is Sega Dreamcast month. August is Nintendo 64 month, September is Nintendo Gameboy Advance month, October is Nintendo DS month, November is Sega Master-system month. December is Sega Genesis month. Now that would be cool and it's entirely doable. Also offerings from Capcom, Konami, Hudson(Besides their TG-16 games). Taito, Namco, Bally-Midway, etc.
It would also be neat of Nintendo to look into getting the rights to enable Atari 2600 games, 5200, 7800, Lynx and Jaguar games for the virtual console. ColecoVision, Commodore 64 games, Capcom arcade ports,
They'd also have include some very enticing discounts or giveaways to get me on board.