I mean if you look at this from the view of someone who doesn't pirate then it's not bad.
My friend doesn't pirate or really use emulators but she really likes the Mario games. She got the collection for Christmas and loves it. She brings it to parties and it usually sees some popular rotation. Seeing as the collection is like $30 and buying all the games on the VC is $23 ($5 a piece for SMB, SMB2, and SMB3, $8 for SMB: TLL) and you get some extras in this (nothing significant but goodies are goodies) and the portability of just being able to bring it on a disc, I don't see it as being a rip off.
Seeing as we're pretty much all pirates and use emulators and stuff then we won't see much use of it. But for someone whose not, it's probably a pretty nice game for your collection.
There was kinda a similar reception by people here when the Sonic Classic Collection came out. You can go find my review if you really want and I basically went more in-depth on why the game was actually pretty good.