Whooosh just about summed it up. It's not so much the ARDSi or similar devices that are the problem; it's the way many people use them. Think of early sharing tools like Napster, then later on Gnutella and BitTorrent. Many amateur developers across several artistic and technical fields used those tools to distribute their products for free promotion. That is completely legal. Taking someone else's copyrighted work is where it steps over the line to illegality.
Silly Bois. Do research. ARDSi is perfectly legal. It'shacking YOUR games. When you buy a game you can do anything to it. Except sell ROMs of it and stuff like that.