Correct, but think of it this way...
If you use emuNAND and your SD card died, you loose everything you had done and would have to start again, at least this way you will still keep some things.
Yeah, but if my SD Card died, my 3DS can still boot (still usable to play regular cartridges games).
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of course no.....
when you get a new sd card, and place arm9loaderhax.bin back into it.
it's alive again
What happens if you lost your arm9loaderhax.bin (hard drive failure, and no backup)? Is the 3DS completely useless now?