I have mixed feelings about emulating current-gen consoles. I think there's a very strong ethical case for emulating consoles whose games are no longer made (despite Nintendo's best efforts to shut that down too). But emulating something whose games can still be bought new would tend to encourage piracy, I expect. Edit: "cracking" -> "piracy", for clarity
There are many reasons to use an emulator. You could play your own games on a new platform, or without having to pay for the hardware (a gaming PC which can run an current-gen emulator is expensive enough!). You could use it to play or develop homebrew software, or to research commercial software. You can use it to bypass region locks, which I would argue are quite unethical in their own right. Even with all of that…
You write a book and would be paid by the word. After toiling away for 2 years, 30% of your work will not be paid for because the publishers feel this is just information. You have been decived.
When labor is carried out with certain promises of compensation and after the work is completed if the fruits of the labor are not compensated to the person company doing the effort then it's fraud / stealing.
Broadly your argument sounds like 'knowledge work is not real work' because it doesn't produce tangible assets.