Man that's super disappointing to me.
I'm all for hacking consoles, heck, I hack just about every console I on, but cheating in a game and hacking your console are so very different things, and Nintendo really gotta step up their anti-cheat game. Or, well, I mean...do any anti-cheat at all.
I'm feeling reluctant to pay a monthly fee for online if the company I'm paying isn't even gonna work to ensure I have a good online experience.
To me, any kind of cheat that is used online should be an instant ban on everything. The console, the accounts data in the game should be wiped from the tables, even the NNID should be terminated, etc.