That sounds much worse for projects like this unless the authors go fully anonymous and always practice clean opsec.

Nintendo probably sent them a deal along the lines of "Agree to take down the project or else we will sue you for millions of dollars". Could you imagine if you were served that and had to respond "it is impossible for me to take down the project because of the hosting I used."

Even if it's a trial Ryujinx could win... Winning and trial isn't free, and you can often can't recoup attorney fees.

How does it deal with material that lands people in the jail?

Okay and I'm not sure maintainers want that

Considering your post history, notably including a "Show HN: Radicle", it's hard to imagine you are neutral third party here, rather than a contributor or someone with other skin in the game. I'll assume you're insincere, and you're free to assume my refusal to engage was a victory - so we can both go about our days.