(Correction: BOTW + Switch 2 Edition pack is $110, not $120)

If you only get the upgrade for the duration that you have the subscription, then that definitely doesn't make the one-time-purchase cost justified in my opinion. If you consider that Breath of the Wild and Tears of the Kingdom is (still) $90 on it's own, the upgrade being included for $110 means that the upgrade alone will be at least $20. While I was watching the direct, I thought it was stupid you had to pay for it at all, but honestly expected it to only be $5 at the most. After all, when you buy a Switch 2, you're paying for the power the console has in that purchase. You shouldn't be forced to then unlock that power through a further DLC; it's not like they remastered the game or something. This is like Tesla making you pay extra for features that are already built into their cars.

However, I do think that the Switch 2 Edition packs like the one in Kirby and the Forgotten Land are justified to cost money, because they actually include a new campaign like a normal DLC should. Even with Kirby though, the actual graphical enhancements should be free. The new campaign should be the only paid part.