One argument I heard for the Yuzu settlement was to avoid discovery. There's speculation that Nintendo had the goods on them, and that discovery would expose them to more than the civil penalties they were facing.
Nintendo has never been friendly to emulation, or most fan content in general, but there are protections for fair-use and this team appears to be building their work behind those, rather than playing fast and loose with them.
Nintendo has never been friendly to emulation, or most fan content in general, but there are protections for fair-use and this team appears to be building their work behind those, rather than playing fast and loose with them.