Also Nintendo is infamously litigious, I doubt even Valve wants to get into a legal battle with Nintendo. Even if Valve won, they’d still lose, and it’s not like they’d be making any money distributing Dolphin. There’s maybe some secondary sales by slightly increasing SteamDeck usage/sales, but that would in no way offset the legal costs.
Also Nintendo is infamously litigious, I doubt even Valve wants to get into a legal battle with Nintendo. Even if Valve won, they’d still lose, and it’s not like they’d be making any money distributing Dolphin. There’s maybe some secondary sales by slightly increasing SteamDeck usage/sales, but that would in no way offset the legal costs.