The comments section here is pretty much an echo chamber of people defending Yuzu.
I'm a game dev and I think this case is more ambiguous. Emulators like Yuzu have the potential to make Switch piracy go mainstream.
You don't need to hack anything, you just follow a tutorial and google "yuzu keys", suddenly you can play all Switch games for free. And people don't need to be tech-savvy to do that. Nintendo would be stupid if they would just ignore this.
It doesn't help that the Tegra X1 is old, almost identical with other Nvidia chipsets and therefore easy to emulate on a PC.
That's a good point actually. I would argue that most emulators didn't get good enough during the lifetime of the console, and even Yuzu isn't there yet. But you can see the potential, and that's threatening to Nintendo's business model.
You don't need to hack anything, you just follow a tutorial and google "yuzu keys",
That isn't a tutorial from Yuzu's developers, however. The instructions that they give you tell you to get your prod.keys from your own Switch.
Further, how else would you do Switch emulation? I've set up a lot of emulators, and I can tell you that Yuzu is far and away more complicated than most of them.