I think what did them in is being US based which is a major advantage for the shysters and their ilk and paid off judges and such. You're much better off using proxies and having as much as possible being out of the jEU and jUSA, jCommonWealth. They even had an llc which is a giant target. Then to ham it up w the monetization schemes and also publicly avail donation amounts, pretty brazen. Citra is for the 3ds and usually there are native pc or better emu versions of anything that console has. I think a learning curve is there for emulator makers. Ryujinx is not in any of those zones and frankly was usually the better emu for switch games. Yuzu was publicly available even source code so there's not much to anyone with the knowhow picking it up and rebranding. Nintendont will likely use denuvo on switch2 games so not sure what the emu status of that will be, backports for switch1 might work.
This is a company that didn't like rental games and the cartel has killed that for digital delivery, which should be illegal if you're going to sell digitally a product and expect the same protections in your favor the other side should get some options in their favor. This is why digital delivery is so big, no rentals. They could easily put most games on a USB-C 100gb for a real product in the real world but don't. A digital rental service is just that though, you don't own it really but you pay for it expecting ownership. These EULAs and cartel should be cracked down on or bypassed through eye patching.