"infringement" in this case means traditional copyright infringement, not DMCA circumvention infringement. Legitimate users of Switch games will have a strong fair use case for this.
While I'm willing to believe that someone like the EFF or similar will step up to provide them competent legal representation given the stakes of this case, I doubt that Yuzu will win against Nintendo given things like the Psystar vs Apple case. That ship sailed 20 years ago and the future is one of being ruled by the whims of major software producers :(