This is really lame
The worst part is is that unless Ryujinx stole some code, they're legally in the clear (see Sony v. Connectix and Sony v. Bleem). They just can't fight back because its frankly too expensive and too dangerous to do so. Its basically a major rich corporation bullying small time developers without the funds or resources to fight back.
With Yuzu and Ryujinx both dead, Switch emulation has been all but entirely stifled. I'm sure some people will create forks where possible but this is doing a lot of damage. Emulation is a great tool for game preservation, and beyond preservation, it also allowed paying customers to be able to play their Switch games at in some cases better performance and resolution than the Switch allows for.
I don't doubt that people felt emboldened and encouraged to pirate by it, but emulation itself is not piracy, and it is entirely possible to emulate something without pirating it. My fear with this is that years of quality work will have been lost, and that it will take a lot of time and effort to recover. There are several older consoles (sega consoles, the N64, Xbox, and Xbox 360) whose emulation is not particularly great, and that is at least in part due to there simply being a lack of interest from programmers and developers to work on the projects. If a console is still modern, interest in development is going to naturally be higher, which helps ensure game preservation for future generations.