Nintendo is the Apple of gaming. They want top-down control. This is evident over the years from how they've treated everyone from Tengen (who admittedly did cross the line in gaining access to 10NES), to UltraHLE, to yuzu. They want control, and they have a huge war chest to spend on that.

I'm waiting for someone to make some tools/hardware for copying Nintendo games that also keep themselves completely clean legally. AFAIK, both the yuzu and the MIG Switch people were kinda shady and didn't stay fully legally above board. Many of the publicized court cases where Nintendo went after mod purveyors, it turned out they were also dealing in pirated software. Where is our savior, who rejects any pirated software or illegal ROMs but still makes the emulator or "modchip" work