I would justify a knockoff console solely on the basis of competition in a free market, besides the fact that it's completely legal to do so (since you didn't bother to cite a patent, I'll assume none actually exists outside your rhetoric, and see Sega v. Accolade to see how a clone console would be justified in potentially ripping parts of the BIOS).

Now if they are misrepresenting the item as a Nintendo product, I have a problem with that, because as a consumer, I am not able to make an informed decision about the quality of the item if its nature is withheld.