Licensed software is your property when bought in Europe otherwise you couldn't sell it
https://www.engadget.com/2012/07/03/eu-court-rules-its-legal-to-resell-digital-games-software/
Nintendo isn't banning your account which owns the game license, its banning the console. You're not losing you 'property', at most this would make it such that Nintendo in EU has to always allow unlinking of accounts from banned consoles.
The law does not state that a device (not you) has a right to access a title that you paid for, it just says you have to be able to access it. Which you can, with another Switch.
Otherwise, think about it. If I buy a game on Nintendo's online store but do not own a Switch... do I have a right to demand a Switch from Nintendo? Of course not. I own the product by my account, not my console.