This sucks hard. They likely knew they could not overcome Nintendo's infinite money for legal proceedings, and if they lost they could have been on the hook for far more than this settlement amount.
The upside is this has no legal impact, but the downside is they were the best-positioned group to take this to trial.
Now Nintendo is going to start going after the smaller guys, who definitely can't afford to fight.
Yeah home-brew seemed like the obvious point at this for the whole "only used for pirating" argument.
I have switch emulators for older/other consoles... homebrew projects definitely exist. I think Yuzu just didn't want to fight the fight. They likely had/have some really good arguments to put Nintendo down...
Now Nintendo is going to start going after the smaller guys, who definitely can’t afford to fight.
The plus side is Ryujinx is Free Open Source Software so a million forks can begun being made right now. Yuzu had closed source aspects, which was its downfall in replication from this point forward. Ryujinx will likely have thousands of clone repositories made after today alone.
People need to make sure they pull the code off of github and put it up on other sites, preferably private repos. Github has already dealt with other 'banned' projects by going through all forks and even re-uploads of them and cleaning house.