Yeah it definitely is, which IMO further proves my point. It's not even hard to play Nintendo games (even switch games!) on the deck right now. It's awesome for tinkerers and enthusiasts, but it is in no way impacting Nintendo's sales or bottom line in any appreciable way. People who love emulation don't like to hear this, but the vast, vast majority of people would rather purchase, own, and play games on the platform they were intended to be played on. Switch hardware and software sales numbers are ample evidence of this.

As for Nintendo and their reputation of going after fan game projects, emulators, etc...They kind of have to. I think Nintendo realizes their special sauce is their exclusive characters and games, not their hardware. If they don't defend those trademarks they run the risk of legal challenges to their ownership of them. Whether that justifies them being as aggressive as they are is debatable, but I do think this is the more likely reason they are litigious than the idea that they are actually worried about losing console market share to the Steam Deck.