A majority of the games available for the neo geo have been playable on emulators for quite some time now, yet the hobby of collecting these original games seems to be unaffected. I guess it bugs folks that they're spending big $ on neo games when others are playing for free, but I don't really care what others do... I've yet to regret buying a neo cart that was emulated.
"will the madness EVER stop?"
The ownership of information like video games and other electronic media will eventually become obsolete. Information sharing is no longer centralized, dominated by only a few corporate giants... So with the democratization of information brought on by the internet (& future technologies), corporations will have to adapt the way business is done... Its not an easy prospect, but eventually copyrights as we now know them will cease to exist.
I'd still rather play my Sengoku 3 cart than a rom anyday. its not like people who would have bought the cart have decided against it because it might be emulated. Either you're the type who'll spend hundreds on a neo geo game or not, I can't see that changing by the availability of roms. Maybe i'm being naive, tho'