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What's the laziest thing you have done?
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Yeah just because you say "this is not in dispute," doesn't make it true. The reason there appears to be no dispute is because video game companies haven't brought a suit against anyone for this specific thing. Until then, it's nebulous and completely up for debate.
Video game manufacturers have lost several emulation suits in the past, and I would not be one bit surprised if that's the reason why they never tried to go after this in courts.
Bleem! successfully won their countersuit against Sony because of fair use.
It doesn't hurt that there is this precedent regarding VHS:
https://en.wikipedia.org/wiki/Sony_Corp._of_America_v._Universal_City_Studios%2C_Inc.
Until Nintendo or Sony, etc actually tries to sue someone for doing it, then it's up for dispute.
What I'm saying is not in dispute is the fact that you buy licences to play games and that licences can be revoked. Both of those are objective fact. It's a separate question as to whether or not a given state wants to enact punishment against a former licence holder.