Haha I remember this launch and how awful it was an thinking about how a bunch of fans have done such a better job. Hell, even Nintendo did a better job for the Wii's Virtual Console.
Yeah it's an interesting pattern. Even the GameCube had decent N64 emulation early in its lifecycle. But the Wii U Virtual Console also had issues with N64 emulation. Specifically it added a dark filter for no reason, which could be removed with homebrew thankfully. You'd think Nintendo would have the best emulation of their own systems on their systems, considering how long people stick around you probably have people who developed for the N64 still there
Homebrew emulators will almost always work better than first-party ones which need to avoid copyleft code, and can be content with a small subset of games being "playable", or "good enough".
Console makers will often hire lead developers of open source emulators to sew something up for them, like what was used for the mario 35 collection (part of galaxy was recompiled too) or the "ps2 classics" software emulator for the ps3.
