Yup your right, I was wrong. Valve keeps the copyright regardless.
Dolphin situation was different though. https://dolphin-emu.org/blog/2023/07/20/what-happened-to-dolphin-on-steam/
Valve only ever insisted that Nintendo had to give Dolphin permission to distribute since Valve was afraid of a potential DMCA coming from Nintendo if Nintendo thought that the encryption keys were IP illegally being redistributed. Since Nintendo says emulators are illegal everywhere but a courtroom, Dolphin team knew that they’d never get an ok. Valve probably knew that but didn’t care enough to help fight that legal battle.
I’m not sure Valve cares about brownie points with Nintendo. The Steam Deck is a direct competitor against the Switch, Valve has done nothing to curtail the use of Switch emulators on Deck, and the work Valve has been doing makes using a switch emulator a better experience.
This whole thing only makes sense if Valve wanted to protect their IP. Involving Nintendo really does sound like blame shifting without having to actually go to court
Whenever I replay OOT I never have a problem with Navi. She rarely hard interrupts, usually just a short tone and flashing C button that goes away after a few seconds. The voice lines only trigger if you press the button to call her, in most cases the hints she gives are genuinely helpful, and stays out of your way for the vast majority of the game.
Fi from skyward sword though… Far worse because she does interrupt gameplay, often repeats what the last dialogue box just fucking told you, and takes several dialogue boxes to tell you what Navi would have taken one to do. I’m glad they significantly overhauled her interactions in the HD release but I’m still going to be hesitant to play that game again