I don't even need to talk technical to prove your understanding is wrong:
- you can't swap discs because after putting disc in, it spins constantly (even if you take out the disc there will be an error, you can't do that stealthy)
- security checks aren't done only when you put your game into the drive
- communication between console and drive is encrypted so you can't do MITM without knowing encryption keys
- do you think people will mess their drives just to play games from other regions? I highly doubt it, even if it works but requires some steps every time you want to play other region disc, it's not worth the hassle
Good luck omitting that.
Even if you are stubborn enough to give it a try, keep in mind that it's not as simple as cutting some traces and soldering a switch or something. It faaaaaar more complex, it requires a lot of reverse engineering etc. It's impossible for person without experience and knowledge...
EOT. After all, I didn't want to be a prick so I'm sorry if you felt insulted.
Disc swapping is not my intention for the chip. That was just a side thought. As for the chip, it will be programmed to pass the correct region info whenever requested. The switch is only to power it off completely for when you want to go online so that ninty doesnt detect it.
Also as for the encryption, everything that runs on the hardware itself is straight up machine language.
I can rig a usb cable up various serial ports on the appropriate ic and read the outputs in matlab to find the correct info while a domestic game is booting. Sure it will take a lot of work and tons of trial and error but its not impossible. Then a simple ASM program needs to be written to monitor for when a request is made for the region info. Once the info is requested, the program will inject the said info. It can set up in a loop so that everytime info is requested, the proper output/input is given.
As for ppl messing with their drives to play imports, use google my friend....