Nintendo has the right to defend themselves because they are the developers, and I agree that the ACNH is obviously a business decision. People also have their right not to buy them if they disagree with Nintendo. The fact is that I can say a great portion of homebrewers are for piracy games. As you said, most players, like you and I, are obsessed with a trash company's games. So I won't agree with you that they are a trash company.Actually piracy is a side effect of what TX does. Which is breaking the console's security. What people use it for is up to them.
Now, Nintendo is not out of blame. Nintendo is the one that is f*cking us over. Most recent example: Just one Animal Crossing island per Switch. If my girlfriend wants to play she can't get a second save game, not even buying a second game. No. She needs to buy another console entirely. Another 200€+50€ to play ACNH. Completely unacceptable.
Second, I don't condone piracy either. If a game is well worth it, I'll pay gladly the Nintendo premium (Nintendo games never go on sale). Like with Link's Awakening, which is a game that defined my childhood. I just bought it and I'm so happy I did. It's well deserved.
Also, Nintendo charges the most to developers for the privilege of writing their games for the Switch. They love to milk third parties out of money. And therefore making the games more expensive than even other higher powered consoles. So if a game is good on Switch, like Witcher III, I'll buy it even if I already have it on PC because I enjoy playing on the go. However: Fuck Nintendo for charging so much per cartridge.
Third, modchips give you so much more than just free games. They give you emulators to take your old systems with you, apps such as Steam Link, media players, web browsers, whatever you want. And they let you mod legitimate games such as Skyrim
TX makes money out of breaking Switch security and liberating the hardware and software for everyone. Piracy? Only if you want.
You see, even if you don't like piracy, this much is clear: Nintendo games are great, but they are a trash company. So screw them. I may buy their products but I won't defend them. They have tons of money and armies of lawyers to fight their fights.
Btw, SX OS is the most user-friendly CFW for pirates because they integrate codes and features from the open-source community, and they made it closed-source. Some devs found that SX OS includes code from Atmosphere, and SX OS natively supports XCI and unsigned game ROM installation. Although they "made great effort breaking Switch security and liberating the hardware and software for everyone," they still make money by stealing codes from the open-source community. In this perspective, I cannot conclude anything else except TX encourages people to piracy games. They claim no piracy to avoid lawsuit obviously.