It was less than 2 days that Yuzu made their announcement. They didn't carefully consider shit, they had their exit plan in case Nintendo came knocking and it was to run for the hills like cowards wasting the opportunity to set a real precedent and possibly protecting the future of other emulation projects.
And they were a company, all liability rested with the company, not the people running it, so they could have easily run it into the ground fighting and then went "whoopsy" and declared bankruptcy like so many companies have done
Right. If the company keeps their money, they have money, for money things. Like giving the staff money, to make others products for money.
If they stack all their money, shove it up a lawyer's ass, and send them waddling in the Nintendo front door, they apparently have bravery, but, alas, no money.
It would be poor leadership to "go into the ground".