Ok, here is exactly how this happen:
1. SX release, people buy it and to feel secure about their purchase, mocking other for cracking it. Other hate them for being cocky and for profit on (assumely) stolen community work.
2. Gateway flashback. Hacker try to looking for brick code to take those cocky bastard down. Holy shit, it is actually there, lol. Shit storm happen. SX buyer start damage control. Say it safe if you don't mess with it. Other throw shit at it just to get back at those cocky bastard.
3. Word of new CFW spreading around. SX buyer start feel the heat in their pant. Try to justify their buy by saying "at least we have it first" while still protect for brick code. Mocking other for waiting when nothing delivered. Tension start as Atsmostphere keep getting delayed and SX buyer keep getting cockier by the day.
4. Brick code remove. Other: "okay, that good but you should do it from the start, now let talk about stolen code". SX boi: "How that crack coming along, hmm? Did you, did you get there yet, hmm? Bet that xci run really nice on Atmostphere, hmm? Yeah, thought so."
5. ReiNX happen. Shit when down the gutter. SX buyer sudden got quiet. Other too busy to finally pirate game for free but still have some time to laugh at SX boi. SX buyer can only weakly fight back "but muh xci". Everyone agree no reason to buy SX anymore.
6. Civil war end, back to present day. SX boi still hanging their confederate flag and feel proud of their founding father. SX still stolen shit. "How many time do I need to teach you this lesson, old man".
7. Emunand happen. SX cheer for SX beeing relevant again. "Where is your emunand huh, ReiNX peasant?". SX come up with original code? Bullshit. Investigate show a cardboard box with "not anything supicious" in the internal hard drive. Lol, are you kidding me? Nintendo will see this shit and ban you. Still no one got ban.
And we arrive at the today, SX still coccky for their full proof emunand while other waiting patiently to laugh at them yet again.