Depends of the country, a lot of countries have exceptions for interoperability (at least the whole EU) and since these projects are mainly used to make ports to other systems, it may be covered.
You absolutely aren't copying the work, recompilation projects are intensive work and a re-imagining of what the source code could look like. Compilation is still a one way process.
And then for the legal part, that's why it's called an exception.
There is little to no creative work whatsoever if you end up with exactly the same game; and often they end up with exactly the same binary as well. Source translations are derivative works almost by definition. It doesn't matter what magic you use to generate it.
And again, where is the interoperability here? Interoperability exception would apply if there was whitebox cryptography, Nintendo logo-style things or anything else where the only method for the work to run would be to violate copyright of _exactly that_. Under no circumstances you can simply copy & distribute the entire work (or derivates) while claiming "interoperability exception!". It makes utterly no sense.
I disagree, the creative work is in figuring out what the game does, and the resulting recompilation is completely different from the original source code.
And then for the interoperability, these decompilation projects are primarily made to target other systems, not the original platform. That's the textbook definition of interoperability.
Let's be real, N64 and the PS1/PS2 (where most of these projects are based) are crumbling old platforms at this point and these projects are sometimes the best way to run games when they exist.
Decompilation produces a derivative work. This is not up for debate, or disagreement.
The exception for interoperability only applies to _the minimum required_ for interoperability. You can use this exception to distribute e.g. game authorization code even if copyright would not allow you to do it.
You _cannot_ use this as an excuse to pirate the entire program, much less to create your own derivative work and distribute it!
This is just wishful thinking that comes up every so often in these threads (now it is the 5th time I see this parroted here). And then, when Nintendo inevitably shuts everything down, cue the crying. This ignorance is simply setting these projects for failure.
Your interpretation, I have mine. As far as I know, none of these recompilation projects ended up in any EU court yet so your interpretation is as valid as mine.
And Nintendo can pound sand, sorry. The only realistic ways to play those aging games is on an emulator or recompilation projects nowadays.
Nintendo also didn't strike these projects, maybe they are afraid of making a precedent.
It is like claiming that compiling Samba to run in $NEW_PLATFORM suddenly strips Samba of the GPLv3.