The current availability of a game in stores is irrelevant as to its copyright status. If you were streaming on a more recent console still in production such as a Nintendo 3DS there are means to do so on Twitch without the use of an emulator. This issue of using emulators on Twitch primarily arises from streaming older discontinued consoles.
Many streamers justify their use of an emulator by claiming they own the original ROM and the digital version is a backup copy. It is not only against Twitch TOS to play a cracked version of a game, but it is also illegal. The real issue lies in the use of playing specific game ROMs.
The use of emulators is very popular, especially within the speedrunning and retro game communities. It is perfectly fine to use an emulator on Twitch.
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