It was technically because you couldn't take it out of your home, but it certainly wasn't what I'd call a standard home console. It's also a slightly different situation because it was abandoned early by publishers so there was less pressure on the 32GB. I don't think Nintendo do 10's of gig patches.
Switch is again being touted as a home console, and they wanted to say a certain thing when they showed SkyRim. If that's the sort of games coming, then the 32GB (rumoured) is just appalling and you will have to almost immediately add the cost of a decent sized SD card.....unless they pack one in of course which is what I'm hoping.
Nope it's not. I'm still on my 500GB PS4 HDD, although it is nearly full. It's got tonnes of games and patches on it. I'm OK buying more storage if I'm a heavy user and want lots of stuff on storage but with Switch you'll basically need it as soon as you go digital or patch a couple of AAA games.