> surprised that nintendo has not attempted to get dolphin shutdown

My guess is that they care about Switch emulation because it's their current console. A Switch emulator actively harms sales of new units and games - and keep in mind, in comparison to Sony and MS, Nintendo is small. They live and die by their IPs and by selling consoles and games.

Dolphin emulates old hardware, that is not produced anymore. They also don't seem that worried about NDS and 3DS emulation and jailbreaking for that matter.