Part of the issue is that the group making Yuzu have a patreon set up to collect money to develop this thing. Like Nintendo didn't give a sh1t about the Wii U emulator Cemu until they tried to put Cemu on Steam. And the group making the other popular Switch emulator Ryujinx hasn't be sued (yet).
The other problem is that the groups making these kinds of things don't know how to keep their f*cking mouths shut. Some fan games have been shut down during development because they let the world know what they were working on. But the successful ones like AM2R (fan remake of Metroid 2) or Streets of Rage Remix only announced their games after they were done, on release day. And when Nintendo and Sega tried to shut down these games, too late, they are already out there, can't stop the spreading. The games even received patches/updates multiple times after launch. But yeah there's been a number of examples where people were making games, tools, mods, and other sh1t for or based on IP they didn't own, and those efforts were successful when the devs kept that stuff under wraps, but those who blabbed about them before they were even done got screwed over. (Actually the SoRR team did inform Sega years before launch, asking for permission, and Sega never said anything. But then when the game launched, Sega tried to swoop in, but too late *******s.)
Nintendo is already highly against Switch emulators because A.) games are leaked before they even launch B.) emulation provides a superior experience. Take Zelda TotK for example. That game was available on PC before it even came out on Switch. On Switch you don't even get full 1080p, and the framerate is 30fps under the best conditions. On PC you get full 4K 60fps, not to mention a number of mods to clean up the visuals and provide other enhancements and improvements. So why the f*ck would you play it on Switch? I saw it running on a friend's Switch, then later on a friend's PC on his 77" LG C2 OLED HDTV. Yyyeeeaaahhh, not even close. Even if you for some reason want to support Nintendo and pay 70 f*cking dollars to buy the Switch version, you should still play it on PC. But yeah with all the attention Switch emulators have been getting in recent years, why the f*ck would you try to draw more attention to yourselves? That happened to Yuzu, and now we'll have to see where this goes. Hoping they come outta this okay though.
Another thing that's unprecedented is popular emulation for a console WHILE that console is still on the market. Usually emulation comes into play at least a generation later, if not well after that. Like you never really saw PS2 emulation while the PS2 was still a current system, and same for PS3 and X360 emulation during the time of 7th-gen. Emulation for 4th-gen and 5th-gen systems certainly wasn't there (or fully baked) when those generations were current. It was only years after the generations were over when emulation for those systems fell into place. But Switch is being successfully emulated while the Switch is still Nintendo's current system. That's definitely ruffling their feathers. I think it's hilarious and awesome though.
Switch hasn't had an easy time of things since the beginning either. The first revision of the hardware has a Tegra flaw that allows the system to be soft-modded, and the flaw is unpatchable by newer firmware. It was fixed in newer hardware revisions, but all of those early Switch systems are wiiiide open. So between that and emulation, yeah things have been rough for Switch. And I care not, cuz Nintendo is very well off, and they NEVER offer decent sale prices for their games, especially their old ones. So f*ck them. I'm glad Switch soft-mod AND emulation is freely available. This way people actually have choice. Maybe if Nintendo actually released their games on PC, people would be less interested in pursuing the emulation route.
