This is a classic case of letting the shit roll down the hill and become someone else's problem.
This is the way I see it. Unless someone actually goes to the platform holder and gets permission to make an emulator of their current, on-market platform; then that person is doing something illegal. And that is a fight they will always lose if taken to court. These people never go and ask permission, because they all know the platform holder will refuse.
Now most platform holders ignore this, because these emulators are usually always at best, a gen behind. But in the case of the switch, the emulators or current, and even far better than anything the switch's weak hardware can manage. And lets not kid ourselves, if 10 people come out and say, I buy a switch game, so I am in the right to download it and play it on my Switch emulator on PC, 9 of those people are lying and just went and pirated that fuck. That is something they likely would not have done if the emulator didn't exist.
Let us not take industry tropes as if they are standard or conveniently operate in the grey zone because it suits us. That no one gets permission to make an open-source emulator of any platform does NOT mean they are not required to do so. That a lot of people have done it with lots of emulators we know and love does not mean a single one of them are in the right to do so.
Its not right, simple as that. As far as I am concerned, these devs that make these emulators, hacks, rips...whatever; operate firmly within the mythical 11th commandment limits.