

No, because that’s not the main goal of these kinds of documents. This is a broad enough definition of what might happen when you tamper with your device that might protect their ass in court should it ever get to that.
But it doesn’t really imply they have a kill switch. Their currently used, fully locking devices out of the Nintendo servers, can already be seen as turning the device “permanently unusable in whole or in part”. Especially with how digital and online focused consoles have become.
It certainly doesn’t exclude it. But many people do hack their console to avoid paying for games or to develop emulators that allow people to avoid buying the system itself. And Nintendo certainly seems to be convinced that it happens enough to mater. While I agree there should room to let people tinker and play the way they want, I think Nintendo should also be allowed to try and prevent piracy of their games.