You still own only a license to the game even in physical releases.
Physical media can and did have DRM and if Nintendo wished they could still remove your ability to play a game you have bought of you made use of any online mode or played a game released after their decision which would require and install a system update.
We need laws allowing users to do more stuff with games they buy (mod it, copy it etc). Physical media is at best irrelevant (when it's a common media without drm) or downright hostile to users.
Sure they will store everything till it's cost effective to crack the encryption, on everything some randoms send each other.
Intelligence will do that for high profile targets, possibly unsuccessfully.