...a person may develop and employ technological means to circumvent a technological measure, or to circumvent protection afforded by a technological measure, in order to enable the identification and analysis under paragraph (1), or for the purpose of enabling interoperability of an independently created computer program with other programs, if such means are necessary to achieve such interoperability, to the extent that doing so does not constitute infringement under this title.

I do not see Nintendo trying to stop Dolphin on just the keys. If they end up losing that battle, it could lead to other emulators just including decryption keys as well.

Hopefully everyone involved calms down after this.

As much as Nintendo would be willing to sue to kill Dolphin, they know they would be incurring significant risk of setting bad legal precedents for themselves: see what Sony did on the VGS case. The most they can do is threaten Dolphin and hope that it stops. Thankfully Dolphin didn't bit this bait.

The armchair lawyer phenomenon was really something to behold.