As I heard it, the fact that they were heavily implying (and often delivering) versions of the emulator that worked with as yet unreleased games for Patreon backers exclusively while the 'open to everyone' version was not as compatible, is what probably did them in.
It would have been pretty hard for them to argue that their emulator was for legal means when they were constantly telling people to pay up for the Patreon to get access to builds optimized for games that hadn't yet gone on sale. If they had just kept the public in parity with the Patreon and just coincidentally had performance uplifts on upcoming games before they dropped, they'd probably have been fine. As it is, they painted a pretty compelling picture that they were "pay for piracy" and that's where the lawyers probably told them to take a deal and get out.
My 2016 Nissan Leaf is 4400lbs, which is more than my larger (but still not that big) 2016 Mazda CX-5 at ~3500lbs. Both manage to fit my family of 5, but the Leaf is far less accommodating and it weighs a good deal more. Small EVs are still pretty substantial. A Kia EV6 which is roughly the same size as my CX-5 weighs 5500lbs. You add a lot to a vehicle when you add an EV battery.