Look at the success of all of these new on-line music commercial ventures. People are willing to pay what they consider a fair price for music. I imagine the same thing applies to Roms. People also are eager to have an easy, repeatable experience. Getting a lot of roms, much like getting illicit MP3's, is technically challenging for the average person, problematic, and filled with bad files, duplicates, incomplete files, etc. For us nerds, we dont mind hacking, but for the average person, an inexpensive, legal path is desirable. The legal issues may not bother us, but they would prevent many third parties (but obviously not all) from building a business model around emulation.
About IP, all of our laws seem to me to relate back to a time when information was stored in text format, which was meant you had a physical artifact, a book, magazine, etc., which you could easily regulate. This is why it's easy for us to understand how this should be treated as property, the delivery mechanism, which is really just a hanger-on is what is seen by the lay person as the good to be bought and sold, owned and destroyed. Now with information being in it's natural state (seperate from it's media), this analogy falls apart, and it's difficult for the average person to understand how I can steal something from you if you still have it after the act.
That's my 2 cents anyways, let me know if I need change.