I don’t think the MPAA would look kindly upon your attempt to “simulate” a movie…

I think the distinction to make here is that in the case of RPCS3 it's more like creating a projector in software than recreating a film in software.

I can tell you that it is explicitly illegal to have the files you load into the emulator to play a certain game if you haven't purchased a copy of that game yourself.

Yes, I know the distinction; that's why I replied to the comment since I felt it was not an accurate portrayal of the situation.

But video players are legal.

Yes, as long as the media you put in it was legally acquired.

the video player stays legal no matter where the files it plays came from...

Yes, the video player is legal. What you’re doing with it is not legal.

What you or the video player is doing is not in itself illegal. The "illegal" part, if you want to use that terminology, is the purchasing and/or possession of an illegal copy of copyrighted material. The fact of copyright infringement doesn't magically emerge through the process of playing it.

There are not—as far as I'm aware—any laws against watching copyright infringing materials; intentional possession is the entirety of crime.

Interesting. Are there any rules against watching copyrighted materials you know were obtained illegally?

No. Copyright is about making a copy. It’s literally in the name: right to copy. A file downloaded illegally means someone made a copy without being authorized by the IP holder.

What you do with the copy is irrelevant.

There are 'performance rights' that are separate from the direct copyright infringement. i.e. if you buy a DVD legally and show it to your church's youth group, you'll be infringing on the performance rights. AFAIAA there isn't an 'enhanced' punishment if you got the IP illegally, just two separate offenses.