Cartridges had another advantage: If a game required more horsepower to play, they could just incorporate the required chip into the cartridge. They did this with the first Starfox game (and several others), and it created very interesting games. They could surprise you by simply giving the console a temporary upgrade.
So the only thing Nintendo ruined was their relation with Sony and Square. Pity, but if this didn't happen, we would never had  F-Zero GX as we know it now. Sony went on his own, and made a lot of quality games, and provoked Microsoft. Nintendo still had the awesome fan-base and quality games, so they could survive this kick in the face. SEGA had the fanboys, but failed to provide enough good stuff. They bailed from the console war and went 3rd party, and eventually ended up with siding Nintendo in F-Zero GX. If they still had their own console, they also wouldn't have created the Total War series, since real-time strategy just doesn't work on consoles.
SEGA going 3rd party was just one of the bigger events on the topic, but you get the point. We would have missed many good things if it wasn't for cartridges, Sony, Microsoft, or whatever happened in history. If somebody ever offers me a time machine, I smack him in the face. Back to the Future taught us that nothing good comes out of time paradoxes.
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