That seems ignorant. I'm not big on piracy, I stick to dumping my own cartridges/discs, but some games truly do become all but lost to time. Things like Earthbound probably would have never gotten the traction it did without piracy in countries outside of Japan. It's not like it was that malicious, it was people that were curious about an old game that wasn't sold anymore and was very rare.
Yeah, Nintendo is providing a legal means to get a lot of older console games legally without having to buy old systems or look for an old copy. It's seriously overpriced, in my opinion, though. Also, Nintendo's eShop service is very restrictive, even more so than other console digital distribution services. If something happens to that console and you can't verify that it was damaged, you have to rebuy your games. If their service goes down in the future or just no longer supports that console, if anything happens to it, those games are gone. You can't even transfer them from a dying but working console to another without their service.
In the end, I don't care if archiving and distributing old games like that is illegal, it's the only reliable way to have old games without having to track down old licensed copies and probably paying far more than you should. The old developers have long since been paid for those games, and I doubt many of them would even see a penny of VC re-releases.
Now as for new games, I don't think they should be pirated, that simple. Once they're out of production, then I can understand.