they won't ban every console you have if you're caught with cfw on one console. I don't think they can legally do that.
If I get banned from a theme park, pub, hotel, casino, funeral home... (or all five in what was one particularly memorable weekend) it tends to be me as a person that gets banned rather than my wallet. Sony would have no legal problems doing the same to gamers, indeed various game companies already might have in various capacities -- Overwatch saw some interesting ones where it was the PC itself get banned (some then looking to buy a new copy and set up a new account found themselves troubled --
https://www.technobuffalo.com/overwatch-ban-cheater-new-copy-format-computer ), some of that forum ban leading to account ban with was it Ubisoft the other year and Nintendo was seen to ping all a Switch hacker's linked devices (though later speculation was that there might have been a hack test on what was initially thought to be a clean device).
Legally speaking though it is a person or entity that wrongs you and a person or entity that suffers consequences. Most companies realise however they only need to send a message (and not even necessarily to them but the kids and parents thereof that don't necessarily consider online just a mild perk they might speak to on the forums), and having what might some of your most fervent users come back to buy another round of your premium online service*, possibly copy of game (or games in general -- don't know what goes for games in the modern world but
https://arstechnica.com/tech-policy/2009/04/study-pirates-buy-tons-more-music-than-average-folks/ ), populate your servers with serious active players, and buy another instance of hardware gains you more than not that.
*if you were inclined to ban even attempts to rejoin then chances are they sign up to this with the same credit card (or linked to the same bank account, or maybe just bought in the same shop as a card), get all the same friends/guilds/clans back, play all the same games as a nice fingerprint there, might even use the same (or very similar) email address, might transfer the old profile to the new system...