We keep forgetting that running emulators is, 99% of the time, piracy, unless you own a stash of Virtual Boy games (or whatever) whose ROMs you're playing. For that matter, creating a media player and watching videos on the media player is likely to be piracy a large percentage of the time too.
You could argue that with the media player at least you're not pirating anything that Nintendo cares about, but emulators are likely to run things that Nintendo, or people who got licenses from Nintendo, do care about.
The main effect of not releasing exploits that are useful for (main console) piracy is to encourage shady companies like Gateway. Not releasing exploits to stop piracy is like banning condoms in order to discourage premarital sex. It doesn't discourage sex, it discourages safer sex.