Except that piracy behind a paywall (that device) and free piracy are not the same thing. The latter might save some people from shelling out money for such a device that would have bought it regardless... AND encourage others to even think about pirating games that wouldn't have if it wasn't for free. Though, on the other hand some of those that wouldn't have bought the device might also not have bought a significant amount of games anyway... I guess one could continue to think about this even further to get as close to the actual impact it would have to release soft-piracy for free compared to just letting the TX SX do all that alone... But my point of view is that the "moral" concern shouldn't be ignored just because there is some device being sold that will enable piracy regardless. And that's as far as I could argue as of now.
I think of 2 kind of people.
a) Got a switch, had bought some games, or maybe none, but if the piracy tool will cost like 2 AAA games, the investment will be worthy as they already have the console, so it is logic to think that at the cost of 2 games they will have them all.
b) Will buy a switch just to play free games, this is the kind of person that will not invest on the piracy tool and rather wait more time for a better, free, stable piracy tool to justify the price of the console, although tru¿ough time, the console will be cheaper. Maybe this new revision, will not stop piracy, but you could always find a console on a second hand market.
i think that anyone that already have the Switch can justify the price for a piracy tool; others with more patience will just wait for a soft mod as it has always been.
This is just a matter of time.
Also, there will be some other people that doesnt worry of online play so permabans are not a worry.