For what it's worth, I was able to fix this. However, I am not about to go through writing a full tutorial.
In a nutshell, you have to install the 'vanilla' Pegaswitch console. Once that is done and connected to your switch, you have to run the SetupNew.js by executing "eval usefulscripts/SetupNew.js" followed by running "runnro installer.nro", but first copying the HBL installer.nro to your pegaswitch root directory.
Of importance here: SetupNew.js sets your switch to allow unsigned NRO execution (ease_nro_restriction -> 1). It looks like this is a permanent setting on the switch. I had to run this twice, and the installer.nro twice. The first time I ran SetupNew.js it said "ease_nro_restriction" was 0 when I started. Fine. The second time I ran it, it said "ease_nro_restriction" was 1 when I started. Woah! It must save this setting for good. This also feeds into the hypothesis that, for those that have this WORKING, probably ran Pegaswitch before and had this NRO setting set to "1" properly before.
It is said that HBL should be setting this to "1" by itself. However, I just don't think appears to be the case.
Anyway, once the above is done and you get your "1337" screen from running installer.nro through vanilla pegaswitch (took me two tries), you can move back to the normal HBL method, click "Run" and eventually will be able to access HBL through your Albums page.