Digital distribution is far less than it was in the 90s, many games sell in far higher numbers they did in the 90s, plus a ton of other cost savings due to scale exist on the distribution side. Yes, costs are higher to develop some types of games, but quite a few studios are able to put out profit generating games at far less than $60 per unit sold.
Cost comparisons over time tend to not be very informative when it comes to products that have significant changes in costs over time, and games are one of those things.
Game prices aren't all about play time or pretty physics, or anything in particular. My top 3 hours played in steam are all from 2019 and after.
$99 special edition 1000+ hours
$70 for a game plus two expansion 800+ hours
$20 discounted preorder 500+ hours
All three just happen to have interesting and enjoyable replay loops. But I also have a few games I spent $60 on and played less than 50 hours and still felt like I got my money's worth.
Recent intendo games tend to feel well done, but not groundbreaking or unique enough to justify being full priced all the time, much less $80 even if I was to get 100+ hours out of them. They seem overpriced for what they include and that is the real reason for the pushback. Nintendo chose the closed envirionment with everything eternally at full price and that is why people are pushing back in their case.