Exceptions

Aside from the moral politics, there is a very functional reason for making efforts to distance homebrew and custom software from piracy.

There is also a backstory and ongoing causation for it. Just like console hacking, iPhone jailbreaking also breaks section 1201 of the DMCA (anti-tamper and circumvention of copyright protection mechanisms).
However, jailbreaking was granted an exception in 2015, making it explicitly legal. This same movement denied consoles those same immunities, due to its close ties with software piracy. This provision is the same ones which have taken projects the likes of youtube-dl and DragonInjector down.

There is a difference in ethical and legal morality. And there are little ethical issues in fully owning the hardware that you purchase. While console hacking is currently illegal, digging the grave deeper by supporting software piracy will ensure that it never leaves its bad light.
The single reason the homebrew community largely is viewed as illegit is entirely due those who succumb to this greed. It’s an uphill battle that realistically will never end.