Despite morons on the supreme court deciding that corporations are people (and bribing politicians is "free speech"), corporations do not in fact have emotions like "hate" or "trust".
The real answer is one of the following:
the numbers guys crunched the data and decided that, somehow, the reduction in piracy due to threat of ban would increase revenue more than the lost of legitimate sales from said banned people would decrease it. HAHAHA yeah okay.
or
Some higher-up made the decision to ban all "illegitimate" users as a kneejerk reaction without caring about whether it was the best decision for the company, and shareholders never said a peep because shareholders HATE pirates. That decision may have even been made in a previous generation and the policy never changed. If the CEO told the shareholders at a quarterly report that they were going to personally go to the houses of all pirates and beat them with a stick, the shareholders would ignore the enormous cost and the obvious legal repercussions because fuck pirates. Look at how the decisions of the music industry fucked them for years until they stopped reacting to piracy in a kneejerk, fuck pirates way and instead ran the numbers... and figured out they'd make more money by ignoring them and selling mp3s and streaming music. Nintendo just hasn't reached that point. It may not seem like it when you are immersed in the community, but piracy has always been such a tiny fraction of all people using the console that Nintendo likely would have spent more money beefing up their security than they would have gained through reduced piracy. Thus, they make a big show about stopping piracy but they have done fuck-all to actually stop it through multiple generations.
