Seems like nintendo should have been happy, the game genie probably led to a bunch of snes sales due to its console killing tendencies(possibly just a myth...but I swear...that thing caused trouble on my nes.) and you literally needed a nes and games to use it.
I get the philosophy behind making games unfun and such, I personally would rather beat a game genuinely than cheat, but seems kinda hypocritical from a company that prides itself in making games where players can enjoy themselves in their own way.
There's a Miyamoto interview on the front page currently espousing exactly such things. Nintendo does many things I personally find counterintuitive and even counterproductive. Especially in regards to things like this. I also owned a few of those black 'non-licensed' nes cartridges that exist for similar reasons.
Nintendo makes some damn good games and I understand the Disney-esque protection over their ip, but some of the things they do just seem like it would be better off if they just let things be.