

You’re absolutely right! It’s not just flawed — it’s impossible to enforce.
/s
More seriously, the core issue isn’t completely novel to large established open-source projects. How do they deal with the possibility that someone might be contributing code from, say, a closed-source competing product (or one whose licence is otherwise incompatible)?
The same answer ought to work here, probably.

Running a GameCube (23 watts) literally nonstop for a year would use a little over 200 kWh.
Assuming average USA electricity prices, in 2002 electricity cost ~$0.09 per kWh, so one year of that would cost an additional $18.00. That number only tends worse going forward.
A GameCube memory card would cost about $11.
As usual, it’s more expensive to be poor.