It's certainly not adapted to the advancements in technology. And the copyright holders of old computer games generally do not seem to be interested in sharing the old games, even though they are clearly not available for purchase anywhere.
If games automatically became free after a limited amount of time, then alot of people would just wait.
It has adapted to changes in technology, unfortunately not the way you would like. Disney has pushed for longer and longer copyrights purely because of VHS/DVD/bluray coming into peoples homes. When they first started they only had cinemas to worry about, who would have trouble making money showing old films. But spread out among the population there are enough people prepared to pay for old stuff if they have to, that it becomes worthwhile & they want that protected.
As for translations, there are plenty of translated roms going about & nothing bad seems to happen to those that do it.