They actually have. Emulation on the Switch has save states, cheat codes, and ROM hacks. Sort of.
So to clarify, for those who don't know, first of all it's not free. Nintendo Switch Online is required to play most of the emulated games. A few are gated behind the premium Expansion Pack membership (which also gets you expansions for Animal Crossing and Mario Kart). So this is how you play N64 and Genesis. Anyway, the games are curated (you get what they give you), but some have a star or something which means it's basically a ROM hack with cheats. Like the one for Zelda II makes you level 8 in all three areas (sword, shield, magic IIRC). That's it. Another might start you on the last level. One might give you all the items in the game. And not all games have alternate modes.
So hey, they're kind of trying.
Agree on the rest though.