Emulation and emulators aren't illegal. Yuzu for example got in trouble mostly for distributing tools for circumventing copy protection and dumping roms and not for the emulator itself.

But it doesn't really matter as nobody has money to defend themselves against something like Nintendo. Here just even the threat of it was enough to get the Ryujinx devs to fold just in case.

This is clearly bad press, everyone reading this gets negative thoughts about Nintendo. We are all talking about how bad they are RIGHT NOW.

Nintendo would absolutely lose that legal battle. It's well established that emulation is not a crime and nor is the development of emulators.