I think although it would make a very vocal segment of the consumers angry, it's not something that ultimately would hurt Nintendo.
It's kind of sad imo but it's the reality of it, Nintendo is one of the most litigious and protective companies in the world when it comes to their intellectual property and this isn't a new thing.
That vocal part of the consumers are those that grew up with the old 'you buy it, you get to play it' approach.
And those consumers are now the ones who will decide what their children get to play. Needless to say, I do not see Nintendo in my household anymore after the switch2 announcement.
There is an entire generation of consumers that grew up with Wii U, Switch 1, Netflix and Spotify and don't know or care about ownership and future preservation. That's where the money is. You may refuse to buy one for your kids but there're many more parents who don't play video games or care enough to keep them from getting one for their kids.
Sure there are people who don't care, but those people don't bring people into the fold. It's a slow erosion. It's how Microsoft is losing ground to Chromebooks and Macs. People who don't know aren't hearing that they need a windows machine as much. They hear they need a Mac for security/ease of use or all they need is a Chromebook because they just surf the web anyway.
Microsoft of course will be fine because they have business on lock, but they used to have consumers as well.
Getting blocked from the Nintendo servers doesn't just mean losing online play, you can't update the console or games, play game-key card games, or run downloaded games that it needs to validate your ownership of.
I never bought a Sony console again after they took away OtherOS on the PS3. And now that Nintendo starts acting like they own the device I paid for, a customer relationship that started in the mid-1980s ends.
edit: and come on, what other purpose do eFuses really provide besides lockin
The option is still available for Pixel phones and those using niche brands like Purism and Librem.