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Nintendo sucks
This is how you challenge actual pirates and grow your real enemy, while you punish innocent civilians. Pirates will pirate, regardless of what Nintendo says, wants or does. The real losers are loyal customers who pay lot of money.
When I got banned from online play on the Switch for using homebrew I stopped paying them for games on the platform. A lot of people are former pirates, and they’ll only accept so much before they decide the grass was greener.