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Dolphin Blog: What Happened to Dolphin on Steam?
(dolphin-emu.org)
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I don't know why a few of these emulators require stuff from real hardware in the first place. Bleem didn't and wasn't passing around copyrighted material, yet every other PS1 and PS2 emulators I know of require .BIN files dumped from a real unit. This is the main thing behind Dolphin being taken off Steam; they're distributing a thing that is violating a copyright. Surely there is a way around this Wii key bullshit the same way Bleem was able to operate without an actual playstation BIOS, right?
Did you even read the post? They say that they believe that including the decryption key is not violating anything as its only a small portion of the software.
It was taken off Steam because Valve asked Nintendo how they felt about it - Nintendo obviously didn't like it, so Valve said Dolphin needs to be removed unless they can get permission from Nintendo.
Them believing it isn't the same thing as actually being ok.
Surely you know more than the lawyers Dolphin got help from.
The lawyers didn't say "it is ok".
Their conclusion is that it doesn't matter because it might or might not be ok either way.
Note that they also say:
Their conclusion is that they believe that they fit in the exemption clauses of the DMCA and therefore, they are not breaking the DMCA by including a mechanism or the key. They think that the exemption clause might not apply if the key or decryption mechanism was standalone.