But it will probably delay the Switch 2 emulator development by quite a bit which their bean counters assume is a win.

Definitely someone with a spreadsheet out there who can tell you how much money they'll hypothetically make based on the spread between emulators existing and not existing.

Although, I won't lie, I tried out Yuzu for a few months and mostly just got frustrated with all the hoops I had to jump through to make it work. Ended up buying a Switch just to get a seamless play experience (which, in hindsight, I guess I regret?) I have to wonder how much business they're going to ultimately lose because someone emulated the PS5, got frustrated, and ran off to buy that console instead.