The PS3 is a relic from an era where consoles being connected to the internet was still a relatively new concept, and security was a lot more lax. Newer consoles like the Switch are far more locked down, everything is signed/encrypted/verified/etc so any tinkering of that sort is impossible without a kernel code execution exploit.
The only option for a banned Switch Lite is installing a modchip (there are people who will do it for you for a fee, well worth it imo).
I'm fairly sure it's one of the reasons both MS and Sony went with AMD hardware from 2013 onwards, they can make use of the security/virtualization features their server platform has.