It's a temporary setback, imo. Despite the whole tourism, the redditors and "game journos" hounding the scene like the hyenas and crows they are, newer, better emulators will eventually rise to take Yuzu and Ryujinx's place, and I dare say they will do so without touching a line of their code. By the time this happens, the Switch won't be Nintendo's primary commercial focus anymore; so they'll have an easier time about being pursued like this.
Anyone remembers VisualBoyAdvance? The original developer basically disappeared - and that was in 2004. I never knew why as a young lad, at 11-12 years old all I knew is that I found it absolutely bananas that my beloved Game Boy games ran on my banged up AMD K6 PC at the time - and since then, I've grown to strongly suspect that it was also a backroom deal to blame. The truth, I think few people know or remember 20 years later.
VBA had famously high compatibility even when compared to much newer and higher footprint emulators, even though by modern emulation standards it's complete garbage (it doesn't emulate many quirks of the hardware such as scratch RAM and is relatively inaccurate - to the extent that you could leverage its inaccuracy to manipulate glitches in Pokémon Red and Blue for example) - but you could still play games that were released after its final release such as Pokémon Emerald just fine on it - and I bet on it that most of us grew up doing just that!