> A proprietary cart has a license that doesn’t include any provisions for installation. Thus, it is only authorized to be executed directly from the cart. So in the specific case I’m talking about, as opposed to your premature extrapolation, yes.

No, the wishes of Nintendo are not law.

> Copying the data from a cart to another system that isn’t directly executing the data from that cart is an illegal act.

Not it isn't, it's explicitly stated that making a copy to run the program is not a infringement[1]

117. Limitations on exclusive rights: Computer programs (a) Making of Additional Copy or Adaptation by Owner of Copy.— Notwithstanding the provisions of section 106, it is not an infringement for the owner of a copy of a computer program to make or authorize the making of another copy or adaptation of that computer program provided:

(1) that such a new copy or adaptation is created as an essential step in the utilization of the computer program in conjunction with a machine and that it is used in no other manner, or

(2) that such new copy or adaptation is for archival purposes only and that all archival copies are destroyed in the event that continued possession of the computer program should cease to be rightful.

[1]: https://www.copyright.gov/title17/92chap1.html#117

If that's the law then the law is stupid and should be changed.

Where did purchasers of physical copies have a chance to read that license and did the store clerk require their signature to prove that they agreed to such an EULA?