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Because the vast majority of users use it for piracy. The Switch homebrew scene is currently a mess thanks to that.
A company that produces a piracy custom firmware is stealing open source code and only integrates their closed source piracy features on that of that. The developers of said open source software did bring that fact to light with concrete proof.
How does the community react to that you might now ask? They shit on the developers and tell them to shut up, since they made open source software and should be aware that it's free. They only care for fast access to "backups".
So, there is that. :)
Nintendo takes don people streaming their games so it's unsurprising
^ until Nintendo accepts Homebrew, I am not going to buy another console by them.
@kescherRant What would Nintendo gain from accepting Homebrew? How small is the user base we talk about, when you exclude "backups" and emulators? On the other side major publishers would avoid a console that is free to run any software the user wants. Especially with the permission of the console manufacturer.
The newer Switch revisions are patched and can only run Homebrew up to a certain fw version. The Switch mini/lite will not be exploitable in the same way.
The best business design for them is to keep it the way they do.