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Nintendo is suing the creators of Switch emulator Yuzu
(overkill.wtf)
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In addition to "format shifting," which is a well-recognized use case, and game preservation, which is a huge and under-recognized public interest in emulator development, emulators are also used for the development of homebrew software. E.g., there's a port of Moonlight for the Switch, which lets you play Steam games streamed from a PC using your Switch, letting it serve many of the purposes of a Steam Deck. That's huge! It would be way less practical to develop this kind of software if you could only test on real hardware. Testing on real hardware is also essential, of course, but testing on an emulator is vastly faster for rapid iteration.