I think this is the best outcome that could currently happen. If they got a ruling it’s very possible that Nintendo would win. That would probably cascade through the entire emulation scene and bring down countless other projects.
(Disclaimer: I’m not American and I’m not very knowledgeable in the American court system. Feel free to correct/inform me if I’m misunderstanding or missing information on this statement.)
Edit: just realized they had to take everything down aswell, that very much sucks.