This shit is already settled in court. This is some particularly disgusting and stupid legal intimidation
Nintendo's claim here is that "the Dolphin emulator operates by incorporating these cryptographic keys without Nintendo’s authorization and decrypting the ROMs at or immediately before runtime," which might technically run afoul of some stupid anti-circumvention measure in the DMCA (which is an angle I don't think previous attempts at anti-emulation litigation have tried).
And, well, um:
Oops, I guess?
(I always thought that emulators that expected you to provide your own copies of firmware and stuff for things were being overly paranoid, but I guess there's wisdom in that.)

