Honestly, I don't have a problem with their policy. Devs have been releasing these insanely sized patches for a long time now and they need to cut that down. If it means more manageable patch sizes, then I'm all for it.
While I don't know how Nintendo's system works, devs don't "release insanely sized patches."
The actual size of the patch isn't under devs' direct control. Devs upload the full build to MS or Sony, and their patch system generates the patch based on what changed, etc.
So the only way to possibly get devs to limit patch sizes would be to ask devs to fix fewer bugs, make fewer improvements, and generally do less work improving the game. And that still might not actually change anything, since where all the data ends up in the package isn't predictable.