That's hilarious that you give the villagers thought and the first thing they want to do is overthrow Tom Nook. If this works in Gamecube on an emulator, surely it'd be possible to make it work on the Switch emulators as well?
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He traps you (and one presumes) all of the rest of the villagers in a vicious cycle of debt, and can only be satiated by millions of bells.
That's more protection racket than bank loan.
Also in real life, you make 0 dollars catching beetles and fish in Hawaii.