They're right to be paranoid. Nintendo is one of the few game companies that's extremely aggressive about protecting their IP (particularly when it comes to emulation and ROMs). They've forced a lot of sites to stop distributing ROMs of games for their consoles and I don't doubt they'd come down with a massive life-ending hammer if they caught whiff of piracy in the Switch emulation scene.
If you say that, then I don't think you've paid attention to what they did to ROM sites in recent years. No other company has been as aggressive as they've been on this front.