So, let me get this straight...
- They say the game can't be dumped. It gets dumped anyway.
- Emu authors refuse to allow their emus to run the ROM. Someone else modifies an emu to run it, and distributes them together.
- So no matter what, there are still people who are gonna play it for free, despite all efforts to the contrary.
- And ultimately, the game still blows... yet they've got oodles of people willing to pay for it, and multiple versions of it as well... even though it's still the same game through all the newer versions.
Sounds to me like WaterMelon is more about marketing than gaming.
Sounds to me like they -thought- they were going to make a lot of $$ doing a retro game, and found out it doesn't work that way

So they keep releasing new versions, hoping the collectors will pony up the cash to finally make it profitable.
Maybe they should have spent some of the time they used to do odd things (things the emulators don't support, a borked cd, etc) to actually improve the game; maybe have people outside their little circle beta test it? Get a little feed-back on the game? Listen to the people who wanted it, instead of saying "this is what you get. You want something fixed? Buy the next release" ?
I for one, am not impressed by the 'professional' release angle. All that takes is someone willing to throw a lot of money at the project. I would much rather see them do it on a budget (say $1000 for 50 copies). Producing it cheaply is part of being a homebrew dev.