For some completely pointless reason, you can run Linux if you want to. Don't ask me why.
Um, what? The laws might be different, but it cannot be said that there is nothing in Canada that cannot be called "fair use" as far as copyright is concerned.
Depending on the size of the settlement, there'd probably be a decent sum left for Nintendo in the end. And draining the company's profits could keep them from creating some other clever innovation that could do far greater injury to Nintendo's corporate health. For instance, maybe Nintendo could implement a new protection scheme in the future, and stopping the R4's developers could keep a firmware fix from popping up right away.
But considering it's the R4 clones these days that have SDHC support and not the R4 itself (right?), it might be argued that the creators of the R4 are already slipping behind the times.