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And yuzu provided instructions on how to dump encryption keys to get those game images. If they just let other sites provide that info and only provided the reverse engineered emulator then they would have been in the clear like every other emulator for the past several decades.

I think the issue was the devs assisted in getting leaked copies of games to run. That's proof they were using pirated games and not legal copies like they claimed. There's nothing wrong with using an emulator to run a legal copy of your game (although im sure IP holders would still give you a hard time), but the devs saying they patched their emulator to run Breath of the Wild before it's even officially on sale necessarily means they broke the law.

Nintendo disagrees

Yes. Game copiers that are used to copy video game software without authorization onto any type of memory device or the hard drive of a personal computer are illegal. They infringe copyright in computer programs in Nintendo products and infringe Nintendo trade marks. They are also circumvention devices. The manufacturing, importing or distributing of circumvention devices is prohibited under the Copyright Act

Until someone with Nintendo's kind of money takes a court challenge all the way they will keep coming for emulators.