Super Mario - Today's direct in a nutshell

2016: Nintendo is run by Shark Tale
2017: Nintendo is run by the Yakuza
2020: Nintendo is run by Joshscorcher

Yea, but if that's the case then it would require even less effort to include it. All the work they had to do to update Galaxy 1 would transfer over to Galaxy 2.

The only reason they wouldn't be able to include Galaxy 2 is storage space, which definitely wasn't the issue. Mario 64 was 8 MB, Sunshine was 1.35 GB, and Galaxy 1 was 3.7 GB. The Switch cartridges have 32 GB of storage. You literally have 26.94 GB of storage to use for the texture resolution scaling and Galaxy 2.

They're actually losing money by not including it as, (unless I'm mistaken) a majority of the space in the cartridges aren't used. The only other thing that would take space is the music player, but unless they used the most inefficient method of storing sound files known to man, that won't take up much space either.