Things get a little messy, not to mention inconvenient, when you're moving installed games to your computer and then back to the SD card, but yes, it can be done. It is recommended that you get a bigger SD card instead.
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If your Switch is patched and it's on 5.x or higher, it is currently unhackable. TX might come out with a modchip solution, but it could be a long time before it comes out, and it will probably require disassembly of the Switch and special hardware you will need to purchase. if you care about hacking your Switch, you should get rid of this one and buy an unpatched model.