Another point in favor of emulation is format shifting. I own a bunch of PSP games and my PSP is dying. There's a good PSP emulator (PPSSPP) that I can use to play those games full-screen on my computer monitor using an xbox controller with the sound coming out of my nice speakers. Why shouldn't I be allowed to do this?

The technology exists to let us do all kinds of insanely cool things. Region-locking, DRM, anti-jailbreaking features, proprietary disk formats and AV cables, handheld devices lacking video-out ports, this crap is all bad news. Emulators are one counter to the tight control that some people try to exert over technology.