So, I'm not gonna respond to anyone in particular since I just read through all 7 pages of this thread, and have a lot I'd need to reply to.
I'll start with this: I am bias for both emulation and piracy as methods of game preservation, game ownership, and even mere game acquisition. I don't think that we should be pirating games or emulating consoles that are currently for sale, however I think it's distinctly harmful to advocate for case law to set precedent against that. Such a ruling would have to be done legislatively, with care, but I err on the side of "let people behave immorally"; we don't need to make every bad thing someone does illegal. People are allowed to be just bad people and/or do generally bad things.
I dislike the Yuzu developers as a whole. I think their practices of hiding distribution of Early Access behind their Patreon is stinky, and I think that their development philosophy of targeting compatibility with the latest hit-thing is pretty uncouth. Contrasting to Ryujinx who, while they do aim for compatibility, they aim for it in a way that increases emulator accuracy. Yuzu makes use of hackish code and shortcuts to make things work, while Ryujinx tends to follow the practice of "if we make it more accurate and performant, it'll become more compatible on its own".
I will clarify, for the sake of the discussion, that while distribution of Early Access is behind their Patreon, as I'm sure many are aware, Yuzu's under GPL 3.0 or later, and as a result, redistribution of the Yuzu emulator is free and legal. There's even a Github with access to it, however I'll refrain from naming it as that particular distribution is also explicitly positive on piracy, and distributes things like the prod.keys and shader caches; both of which violate the DMCA and should be retrieved by users manually instead.
I'm not sure if Nintendo has a case here, but if they win this case, depending on the court's opinion, it may have a ripple effect upon all emulators, including ones of legitimately archival consoles. The entire retro-gaming scene's going to be watching closely, because the outcome could be disastrous. On the other hand, should Nintendo (somehow) lose, it could sanction more open distribution and monetization of emulators, as well as it could set precedent that emulator developers can lay in the territory of being given "the benefit of the doubt" when it comes to pirating games, including ones that are yet to be released. I think this is a bad result too, but a lesser-bad one.
I dislike that Nintendo even attempted this lawsuit. The outcomes don't look good regardless. It'll also be difficult if Nintendo files for an injunction on Yuzu's Patreon and a freeze on the funds they've recieved from them. Currently, Yuzu makes around $30k/month from their Patreon, and with this lawsuit and the fear its creating in the community, that value's increasing by the hour. They could fund a solid legal defence with those funds, but if Nintendo were to successfully file injunction, Yuzu would have to resort to a proper legal defence fund, from which we don't know how successful that'd even be as the initial outpouring of support slows.
Best case scenario, this case gets thrown out, but given this isn't a SLAPP case, and how well Nintendo funds their legal team, I find that next to impossible.