Quoted from asay:You can legally make a backup of a DVD/Blu-Ray, exactly for the reason you described. A ROM is the equivalent of that backup.
Yeah, maybe you can legally own/use an arcade ROM... IF you own an original arcade machine or the original CPU board. But I doubt many people own the (almost) 60 original games that come emulated with ROMs on the 60-in-1 board.
FWIW, the ArcadeSD does not ship with any game ROM data on it. You can load game ROMs (approved/filechecked ones only) onto a microSD card and the board will run them.