In a sense, yeah.
By no means I'm an expert so don't take my words for granted but if you're using MIG Switch for piracy, you have a high chance of getting your console banned. At the very least, you must make sure that you're using the complete full dumps of the games on your MIG Switch SD card (i.e. no incomplete and/or mixed dumps with borrowed certificates) and that no other user is online with the same copy of the game with the same cert files at the same time online (not sure if this extends to the people that are only playing those games offline at the same time due to the telemetry data that your Switch and, by extension, Nintendo collect).
I've seen cases where people used full dumps, were playing offline and, apparently, they still have access to eShop after a factory reset (which doesn't really do much, especially not for clearing the telemetry). For all I (or we?) know, as soon as you eventually connect your Switch to the Internet and your telemetry data gets sent to the Nitnendo servers, depending on what they find your Switch might get at the very least flagged for ban.
From what I've seen, there are only two ways where you'll avoid getting banned:
- By dumping your own physical games and using only them on your MIG Switch. - Make sure that your games wasn't previously dumped by someone else (i.e. bought new or used from a trusted source). Not sure how many people have dumped their games and shared them online before selling their physical copies, but probably not too many?
- By restoring a clean NAND backup created after you went offline but before you went online and successfully connected to the Nintendo servers again. - Log mismatch between your Switch and Nintendo servers usually leads to console ban. Staying offline indefinitely just delays the inevitable. The problem with this method is that you need to already be able to actually make a NAND backup and that requires either having an unpatched v1 model or a modchip on the patched models and, if you have either of those, you can already run Atmosphere CFW and you don't really need MIG Switch to begin with.
There's a third way as well that's similar to the first one, but requires forming a smaller group of friends that share their full dumps. In this case, it's less likely that both of you will be online at the same time, I guess.
@TheStonedModder might be able to tell you more about that as his Switch is still not banned to this day last time I checked.
Nope. You can do it without ever going online. Linking NNID is not possible without going online, though.