I'm with John from Digital Foundry with this. I really hope Nintendo loses this and doesn't set a precedent.
Even with their specific framing, it could be quite hurtful to all of Emulation in general. (Edit: Just ignore this part lol.)
I think some underestimate or don't know how important Emulation is for Archiving. There are private and public efforts in most countries around the world to collect games but in most cases it is very inconsistent. For example here in Switzerland only games from here get archived properly and despite how little the scene is, it is hard to track down older titles and it took a lot of effort to get public funding for it. France tries to archive any game that gets released there physically (if I remember it correctly). They have an impressive collection of 20'000 games, but the library is of course nowhere near complete and it stays really hard.
For preservation, education and research purposes it is super important to have these games properly archived. There are countless Public or Restricted Access Archives around the World for any Book and Film for the at least last 100 years. Like every fucking table gets archived.
But when it comes to Software and especially Games it is way harder, especially if you want to stay in legal grounds. It would be even better if they could outright archive the source code of at least some historic games (Because now they have to actually recreate the games in some cases), but publishers would never allow that. Just imagine Nintendo giving out the code of the first Mario. Will never happen, but it should. But that's a different story.
To weaken emulation in this regard would make things even worse, because then you would be even more dependent on the hardware to actually play the games. It is much harder to get and maintenance specific hardware instead of just getting the copy of the game and make it playable on any modern PC. I mean it is already an issue to get games into museums or to deeply analyze them at Universities. Believe me, even when I disagree, the few Researchers I know just pirate classic games if possible, when they can't get a copy.
Just remember,
90% of all games in the US released pre 2010 are not available anymore to buy and some of them might be forever lost. We need Emulation to get some of the history of games back and make it impossible to happen this to any curent game "trapped" on a specific hardware.