I don' think it has an impact. Basically, right now, emulation only works 100% out of the box until 16-bit. Consoles of latter gens usually need some fussing (mainly 5th and 6th), while 7th gen is, at best, in a pre-alpha state. So it really doesn't impact platforms that are still being sold or having games available on stores.
Of course, it probably has an impact on these retro copies of games sold on PS Store, Google Play, Xbox Live, etc. But they are just ridiculous cheap ports and are usually also sold pretty cheap. So I wouldn't say that anyone is losing its mind with this.
It helps to keep the memory of gaming alive. Imagine how many amazing games modern people would be denied without it. I know it's not exactly "legal", but saying that it is "killing" the game industry is completely ridiculous and a massive overreaction.
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