27 Years Ago, Nintendo Almost Revolutionized Digital Games with Nintendo Power
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I hadn't heard of this before, but it's clearly a successor to the Famicom Disk System, which worked exactly the same way but with rewritable floppies.
That could summarize a huge chunk of tech ideas in the 90's.
The key technologies here was cheap storage and widely available broadband, which both arrived by the mid 2000's. Thus Steam, and the entire online catalog of the Xbox 360/Ps3 and beyond.
Remember, in 1997 you were going to shop anyways. Major stores investing in the writer would be a no-brainer.
I think the digital pricing on those only works for the same reasons that Epic's "give away free games to get people to pay attention to our platform" 'works' - some of the games become not profitable on their own but simply having them has network effects b/c then it improves the perception that "anything you want can be found on here", and since you have finite space on the cart at a time, and nobody can sell you one with more, you don't have such a risk of people making verbatim identical replicas of a cart with every game possible preloaded at a cost well below the service's pricing for such.
In the modern storage/bandwidth era, I believe a large collection of many SNES ROMs on archive.org is around half a GB total, compressed, so even assuming they were getting 20:1 compression or only had 10% of the games or something, ~10GB is absolutely trivial to land on flash these days, so if Nintendo directly tried to offer something like this now, absent much more invasive copy protection than the SNES ever had, the business model would be broken.
(I suspect this is a large part of why their model with the Switch is a subscription service to "yes" with additional subscriptions for higher demand/cost ratio things - they probably have some data from the 3DS and Wii/Wii U that shows people had a couple of favorites they would absolutely buy on "Virtual Console", but the long tail of things don't get people buying much, whereas with such a subscription service, they probably make more consistent amounts of money, and they don't have to worry about that pesky "people can play it forever" problem...)
e: I should also mention that Nintendo Power wasn't unique in this value proposition - https://en.wikipedia.org/wiki/Sega_Channel was a cute service, for example. The https://en.wikipedia.org/wiki/Satellaview was also a pretty direct predecessor.