Personally, I'm not much of a PC gamer, so I don't have a lot of personal experience with Denuvo; but this sounds pretty concerning.
My understanding is that by Denuvo LoJacking into every part of the game, it seriously hampers performance; and the Switch is underpowered enough as it is. I can only imagine how poorly games will run if the Switch has to devote resources to Denuvo as well.
Plus, from a preservation standpoint this is terrible too. Even if the studio drops Denuvo down the line, it will forever be included on the cartridge. This means that in the future, the only way to play this game will have to be an emulated copy, since you won't be able to get the update to clear the (no longer supported) Denuvo from the game.