The “legalese” explicitly stated in clear words that they have right to brick your device. If they had no intention of doing it they wouldn’t put that in.
This was added so once they brick it they can argue in court that you agreed to this when purchased your switch.
Before it happens they put it in EULA which they did.
You acknowledge that if you fail to comply with the foregoing restrictions Nintendo may render the Nintendo Account Services and/or the applicable Nintendo device permanently unusable in whole or in part.
It couldn’t be any clearer.
If they going to brick the console they better refund the money.
What do you expect? Disable console first, then put things in EULA?
Why put something like this in EULA if there’s no intention of doing it, especially as they didn’t put it for EU where such practice is outright illegal?