The Switch is "just" an Nvidia Shield, albeit not running android. The carts are your standard mask ROM on a (proprietary) bus manufactured by Macronix and so would not be able to extend the functionality in a meaningful way.

Texture decompression is handled using the hardware acceleration on the Tegra if being used to save VRAM, otherwise using standard libraries (like libpng, libjpeg, etc.) in the game software.