Im aware of all the ROM and flashcarts copyrights and whatnot, but them saying that is weird, I will talk to my contact about that, although I think it is useless to add Rom compatibility. Although, if they add that, it would kill all those flash carts market for the most part; because you can buy a multi emulator console for less than 100 vs a cart for 1 console only for over 100.
Anyways, about the roms online and downloading; I think this rule of copyright might be applicable, thus being the reason why nobody has don a TOS claim to any rom site. Also, that rule was supposed to end on 2009-2010 I do not know if it is still enforced. If you follow the link, there is another link where it goes deeper into that rule, and if I'm not mistake, they say that if the console is discontinued and no longer being manufactured, Roms sites are protected by this rules as they are considered archives.
"The Librarian of Congress, on the recommendation of the Register of Copyrights, has announced the classes of works subject to the exemption from the prohibition against circumvention of technological measures that control access to copyrighted works. Persons making noninfringing uses of the following six classes of works will not be subject to the prohibition against circumventing access controls (17 U.S.C. § 1201(a)(1)) during the next three years.
(3) Computer programs and video games distributed in formats that have become obsolete and which require the original media or hardware as a condition of access. A format shall be considered obsolete if the machine or system necessary to render perceptible a work stored in that format is no longer manufactured or is no longer reasonably available in the commercial marketplace."
Source:
http://www.copyright.gov/1201/2006/