Except for the fact that Nintendo is doing exactly that on the switch. Physical games have a digital license embedded in the cartridge itself. In this way Nintendo can stop people from ripping games and sharing the backups with friends. With that said be careful when buying used switch games.

It’s bad practice to do it, but it makes it especially easy for end users who already trust both the source and the script.

You’re not wrong but this is what lead to the xz “hack” not to long ago. When it comes to data, trust is a fickle mistress.