I think it's great. Partially due to my sort-of-different gaming background. I loved games as a kid, but my parents would never let me own any gaming machines. So I played games at friends' houses, read gaming magazines, etc. but could never have my own collection.
Fast forward to fall 1997, where I'm finally out of the parents' house, and have my first real computer (that I bought for college work). I had been out of the gaming loop for the first couple of years of the 32-bit generation, and didn't have the money (or the space, in my shared dorm room) for a TV or any consoles. Somehow I heard about emulation, and instantly I thought it was the coolest thing ever. All those games I had read about that looked cool but I never had the chance to play, or that I started on rental copies, or borrowed copies, that I never had the chance to finish, I could download for free and play whenever I wanted. It was a huge rush.
I never thought about the piracy issue at the time, and by the time I did I was already hyped about the Dreamcast and PS2, and of course ended up getting both, and becoming a full-fledged gamer that buys a lot of games. So I think as a whole emulation helped developers get big chunks of my money, it didn't hurt them at all in my case.