So, all they would really have to do is put serial numbers on the games in the hardware. That's it. They could encrypt it and such a way that would be very difficult to reverse engineer and you're all done. I'd be very surprised if they haven't done this already and I'm interested to learn if this neat little hack continues to work 6 months or a year from now.

My concern with buying something like this is that as soon as Nintendo figures it out, every device that is found to have had one of these on it will stop working forever and every account that is used one of these will likewise stop working forever. You lose all your hardware and all your data. It may be worth looking into if it continues to work once they launch their next system though.