And like every other DRM, it's just going to be something that the people who bought the game and play it unaltered will be forced to deal with in one way or another... while those who modify the game, emulate or pirate it, won't. I love DRMs. Nothing like feeling like a sucker for actually buying the game and not cracking it.
Gaming
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Personally, I'm not much of a PC gamer, so I don't have a lot of personal experience with Denuvo; but this sounds pretty concerning.
My understanding is that by Denuvo LoJacking into every part of the game, it seriously hampers performance; and the Switch is underpowered enough as it is. I can only imagine how poorly games will run if the Switch has to devote resources to Denuvo as well.
Plus, from a preservation standpoint this is terrible too. Even if the studio drops Denuvo down the line, it will forever be included on the cartridge. This means that in the future, the only way to play this game will have to be an emulated copy, since you won't be able to get the update to clear the (no longer supported) Denuvo from the game.
I can only imagine how poorly games will run if the Switch has to devote resources to Denuvo as well.
Pokemon Go added code obfuscation (I forgot the name of the company that provided it) some months after it was first released. Phones started running very hot, battery life dropped drastically, and people who played a lot had to replace their batteries (or phones) in a fraction of their normal lifetime. Also, as you imagined, performance dropped significantly.