Not sure if you’re being sarcastic but “digital only” means the only way to put games on the device is via digital downloads (aka from the web store downloaded via internet).
Each company tries this because it effectively eliminates the third party/aftermarket sales and gets them a monopoly on prices. Never have to lower the price on a game to move physical copies of you don’t have physical copies to store, so games no matter how old can stay at full price for as long as they like. Don’t have to cut your margins by selling at a reduced price to a third party to resell so all the profit comes home.
I know why companies do it, it makes sense financially. But turns out a lot of people aren’t fans of not being allowed to have the option to physically own their own media, even if they don’t always do it.
Eh, it’s also a bit of a teaching opportunity with kids. A decent parent will teach kids which things are okay to hit and which ones aren’t, and this is something that can help with that. Someone’s probably going to get hit once or twice yeah. But kids also get mad when they can’t stick forks in outlets. I don’t see this toy being any worse than a sword or gun toy.