I do have to agree with that, old Nintendo classics so far that Nintendo isn't making available are fair game at this point. Nor do they allow you to transfer said games so as far as VC is concerned if Nintendo doesn't care, I don't either.
It's the new games that I'm a little concerned about, as others on the thread noted Nintendo will be fine for sure, but once this thing really takes off I wonder how it will end up affecting the development community as a whole. The two examples of rampant Piracy I recall is on PSP and DS, and while DS games still sold extremely well, PSP games did not. An install base of over 80 Million and the highest selling game didn't get past 6M units. With Nintendo of course their software is so resilient, I just don't know if the same will be true for other developers.
And to play devils advocate against myself, this only currently works for physical games so, there's that. But yeah I'm probably overacting, but this just screams PSP to me.