Not everyone in the world visits this forum or others discussing hacking, so yes it is sickening if it happens. I don't think Nintendo is being inept here, they are protecting their IP in a very good way. Being able to revoke a certificate of a console as they deem fit is very good practice for malicious behavior. The "game" or intent of banning a console for it's next owner is outright foul.
For Example, say this does happen. Guy buys a switch and dumps the cert, puts it back on the shelf and uses CDN religiously because "muh free gamez". Next guy picks up the switch, hooks it up online no problem, has NNID, dumps $1000 (again, example) in all digital games and online subscription system, BOOM, next ban wave hits. He calls Nintendo, finds out he's banned for an "unknown to him" reason. He can't buy new games, can't play online, can't get new Splatoon or ARMS, or Smash DLC to enjoy it when it comes out. His NNID and console are worthless (aside from already installed content) because he can't transfer his NNID to a new console - eShop or call to Nintendo required, and do you think they'll allow a banned console account to xfer? Who knows right now, but probably not.
But seriously, if it's you would you want that to happen to you? Who else wants that to happen to them? I don't think anyone that isn't expecting it to happen. What if it's your kid you bought a console for that this happened to? You'd end up dumping another $1000 (going back to the example) in a second console and all of the games they previously had because your kid would be crying their head off, and you'd be furious at Nintendo when really you should be furious at the asshole that dumped the cert and used it without you knowing.