I agree with several of the replies here regarding the preference for original hardware over emulation being strongly tied to nostalgia. I'd love to see a Teal N64 in front of me again, but unfortunately, retro gaming—like vinyl—can become quite an expensive hobby. The inflated prices of certain games nowadays don't help either.
That said, I also recognize that many people return to these consoles because they feel they haven’t experienced everything the system had to offer. Using the N64 as an example, I never got to play many of its classics when I owned it. I only experienced games like Mario 64 and Ocarina of Time thanks to emulation. The N64 had a fairly concise library, with 384 games if I recall correctly, but think about how many "classic" games most people missed when they owned a console like the PS1, which had over 2,000 games.
So yeah, for me, it’s got to be emulation on this one.