1. That excerpt almost sounds like it was lifted strait from the now-defunct Sega Base (once archived on www.sega-cd.org), and I mean word for word.
2. Naka created a program that ran NES games on the Mega Drive, this is true.
3. He is NOT THE FIRST HOMEBREW PROGRAMMER.
Let me sum this up as simplistically as possible: even if you subtract computers (ie - PC, Commodore 64, VIC-20, etc), people were cooking up their own games back in the late 1970's and '80s via several consoles, the most infamous one that comes to mind being the Balley Arcade.
Certainly a nice nugget of history that was unearthed, but the facts do need to be clarified.
Mikaa