They would already nuked the databases if so. C&D is much cheaper.IMHO that is a bit naive. Do you really think Nintendo is not caring about the fact that you can install nsps? They are far from stupid and know already you can install xci/nsp on atmosphere. Also emulators like yuzu are already on their radar... Do not think otherwise (but I could be wrong of course)
Perhaps legal actions are already being prepared... Who knows.
What I do hope is that the code to mount xci will stay hidden because when someone creates a way to mount xci on atmosphere (some fork, plug in or app) then that will be extra ammunition for nintendos legal team to kill it off.
I've spoken with people in the homebrew scene and it's the reason why they don't wanna do an XCI loader. It's only for piracy. NSPs are universal.