IIRC the current approach makes your switch dual boot the unmodified firmware and the custom firmware with online capabilities disabled, so you could still play online and avoid bans.
But I wouldn’t trust that with an expensive account-bound digital library.
I had a hacked switch 1 for many years and was never banned. I always played in airplane mode, and got a 2nd to play online with. After I reset the switch to gift to a friend, it was not banned. If you’re careful it will be fine, but I’m sure they’ve cranked up security on switch 2.