Not to be a stickler, but this does not say making copies is illegal - it makes circumvention of drm methods illegal. You can make drm'd copies as you like as long as you don't circumvent the drm method. If your game isn't encrypted, and the emulator doesn't implement the drm, you haven't circumvented drm - you are playing your legal copy on a device that does not implement the drm. It's distinct from removing the drm from a device that implements it.
I do get that most consoles encrypt their software these days, but let's be clear - it's not as simple as "DRM means you have no rights."