They also painted a gigantic red target on their back with that.
The legal arguments against piracy are related to loss of potential income, but that's hard to prove.
Except when you accept donations and they can point to it directly. When the donations spiked around the time of the Tears of the Kingdom leak, Nintendo's lawyers probably got very excited.
I'm not saying the devs for emulators can't or should never accept donations, but you have got to be smarter about this.
There is an abundance of precedent that emulation is not copyright infringement and is not in any way illegal. You can absolutely make money on an emulator and there is absolutely nothing they can do.
Sony v Bleem! And Nintendo v Galoob already set legal precedent in this case, no? They sue over alleged "circumventing copy protection," but doesn't Yuzu operate the same as Ryujinx? Why would Nintendo only go for Yuzu and not both?
I generally support emulation, but I admit Switch emulation is hard to support when it happens while the machine is commercialized and the authors are trying to get money for it.