do we anticpate there will be upgraded versions?
Maybe there will be a better way to select the games instead of cycling through them all left and right, but only time will tell. Other than that, based on what I've seen so far, probably not.
Also I do these carts allow for other features like game modding, emulation, etc?
Currently not, probably never will. They are pretty much emulating one or more official carts on one single cart and that's pretty much it.
And if not can we expect one that does in the future?
Probably not. Lotus3 is the a separate chip on the motherboard responsible for communicating with the gamecard. I'm not sure about the technical stuff behind it, but Nintendo made it isolated from SOC so, even if it does get compromised at some point, it shouldn't affect SOC.
@impeeza can probably explain it better for you.
In any case, MIG Switch and alike are
perfect for banned Switches, allowing you to play publicly available dumps as long as you have all the necessary files. At least, for now, unless Nintendo decides to do something about it and update Lotus3 firmware to reject MIG Switch, provided it's even possible to do so. Again, I'm not really sure about the technical stuff so I might be wrong.
However, if you want to play you own game backups (or shared backups from a small private group like
@TheStonedModder mentioned sometime in the past), you have to be smart about it and use it the way it was intended to be used: full, valid, complete dumps, sorted in a way explained by the MIG Switch devs and that's it. No incomplete dumps, no mixing of the certificates (I thought it was possible to do so at first, but apparently not? Someone correct me if I'm wrong.) since those things lead to ban.