It is working. It buys them enough time to sell enough new hardware and games. It will take a really long time until development picks up again, since basically every developer associated (not necessarily every one who has contributed to the project) with the yuzu group can no longer legally work on that project. So basically a lot of expertise is lost.
Although i think the need and the drive to use emulators is higher then ever. So the next project without direct responsibility will come eventually I think.