If you're worried about it still, it wasn't nothing. Might not have risen to the legal definitions of SA, but the law isn't a good yardstick for that. Might be worth talking more about to see how you really feel about it.
Probably meant in comparison to where ps3 emulation is currently. I agree, xenia has made amazing progress. For the "lol 360 go brrrrr" folks it has a long way to go still.
Assert your dominance and shit someone else's pants.