Interesting takes ITT as these sorts of Switch hacks, if I understand correctly, enable copying of games e.g. playing them for free instead of buying them. So the punishment isn't really about the hacker and his livelihood, it's more about the damages caused. Do you sing the same sympathy song for say 25 developers or an indie/small studio that closed or lost jobs due to uncollected revenues being the fallout of such hacks? The material cost could very well be something like 25,000 gamers downloading 10 games each and playing them for free e.g. 250,000 game sales gone in the blink of an eye. It effects industry, which affects real people well beyond the poor victim hacker e.g. developers, marketers, designers etc.
This is why illegal behaviour is made an example of in such cases.