Is there a Nintendo approved way to get ROMs on the iPhone? Does Nintendo have no legal recourse to this?
There is a ton of 'homebrew' for the NES that contains no proprietary Nintendo code, and I doubt that any part of the 'hardware' being emulated is protected intellectual property.
A case can easily be made that it is designed with home brew ROMs in mind. Despite the obvious fact that it will inevitably be used for copyright infringement.