We're in danger of losing 87% of games and it's only getting worse.

We're not in danger of losing anything. There's no putting the genie back in the bottle. How is passing new laws going to magically detect and erase all the PSX, SNES, MAME, etc ROMs that I play offline from my computer? How is it going to prevent people from torrenting these files through VPNs in countries that don't give a rat's ass or sharing encrypted ROMpacks? Jesus, even archive.org is chock full of retro games. Trying to get rid of ROM sharing at this point is like trying to dry up the ocean with a fistfull of cotton swabs.

Plus, emulation itself is not and cannot be illegal, barring a complete redesign of intellectual property law from its very foundation. Games themselves, BIOSes and encryption keys are protected, but an emulator is, in rough terms, "something that achieves the same result through different means", and if that could be made illegal, then someone could patent the hammer and you'd have to pay a fine for nailing two things together with a rock.

I don't think emulation is going anywhere. Well, it may become more illegal than it already is, but that's not going to stop many people from continuing. We are already too good at file/software sharing and preservation.

The 'legal' part of emulation (with precedent) is the development of emulator software through reverse engineering a console system. The angle Nintendo+co is most likely to attack is that emulator software allows users to circumvent first-party security restrictions that are meant to make games run only on authorized hardware, thus violating the DMCA.