@Crockin What the heck does that have to do with anything?! If you want to do restaurant comparisons to Animal Crossing, the current situation is like this:

Guy: "Oh look the waiter is coming with my food!"

Waiter: Trips and falls and spills entire meal on the floor

Guy: "Oh no, well at least the manager will offer me a free replacement meal since I lost it at no fault of my own"

Manager: "Nope. Some minuscule percentage of customers manipulated us into giving them free meals by pretending we messed up their order, so in order to prevent that from happening we now have a policy against replacing ruined meals. You'll just have to buy another meal if you want it."

The meal is Animal Crossing save data, the guy is a consumer, the waiter is a Switch, and the manager is Nintendo. Your comparison implies people are asking for weird, oddly specific game features, but no one is. People are asking for a very basic feature that is already available for other games, but Nintendo refuses to offer it for this one for ridiculous reasons.

Just like there's no excuse for a restaurant to not replace your meal if they spill it everywhere, there's no excuse for Nintendo not to allow you to restore a backup of all your save data when their console fails. Especially when they already have the feature implemented on other games and they are withholding it from the consumer.

If they're concerned about people exploiting cloud backups to duplicate items? Fine. Make it so Animal Crossing saves can only be restored by tech support, who will only do so if it hasn't been restored recently and if they can verify you have a valid reason. Boom. Problem solved.

If it's a technical challenge due to multiple users sharing a bunch of save data? Cool. Simply make it so that you can select a primary user who's account uploads all the save data to the cloud, while the other users don't have anything uploaded to the cloud, even if multiple users have Switch Online. This is NIntendo, they are fully capable of solving any technical hurdles that come their way.

And this whole thing about not being able to transfer save data to another system is even more insane. Hopefully it's not true. But going back to the restaurant comparisons that would be like requesting to move to another table and the manager saying "Oh yeah, of course you can do that! You'll have to leave all your food behind though and order again. We will not allow you to take this food you've already ordered to the new table." Again, it's absolutely insane and there's no excuse for it.

Obviously Nintendo doesn't just want users to be able to clone islands, so why don't they, oh I don't know, allow users to choose between moving the island with them or just their profile to a new Switch? If a user transferring to a new Switch chooses to take the island with them, they get everything on their Switch while the users left on the old Switch can start out on a new island. If the user chooses to transfer their character only, they get to start on a new Island while the old switch users get to keep the old island. Again, problem solved.

Nintendo should have been planning on supporting these features from the very beginning of the game's development. They should have made sure that the saving system would be compatible with cloud saves and system transfers (Again, both basic features everyone expects to be available by default, one of which you have to pay for) and spent some time actually thinking of a way to prevent cheating instead of just taking the easy way out and just disabling cloud saves.

...I can't believe how long this ended up being.