

Not really. It sounds like they haven’t gone after them for emulation, but instead for emulation-adjacent things: copying ROMs, circumventing digital locks, etc.
They explicitly mention (one of?) the developers of Yuzu sharing ROMs in the article.
In other words, the emulator itself isn’t illegal, but in order to use the emulator the way most people want, you have to do illegal things, and that’s what they go after you for.
There was a good discussion online between Christine Lemmer-Webber, one of the editors of the ActivityPub W3C Standard, and Bryan Newbold, protocol engineer at BlueSky.
These are long reads. But they are worth reading. Christine and Bryan agree that ATProto and ActivityPub have different design goals and so what you get from “federation” with each is different. ATProto makes a centralized index of the entire system possible, at the cost of relying on very few (practically likely one) centralized providers.
As a result, the Lemmy ecosystem, as it exists today, wouldn’t be possible with ATProto. It would probably look more like Reddit, but with a “credible exit” possible as a defense against enshittification.