Well, I'm personally waiting on an open source CFW to get a 2nd switch to enjoy homebrew (linux, older consoles emulation, switch ROMs). Shouldn't be that long I thnk.
As for 'piracy', my take on that is I'm currently buying 1 physical switch game a month, not mentioning some eshop titles when discounted/not available in physical format, this is what my 'personal budget' is. I'll allow myself to test some switch ROMS once I get 2 switchs for games I did not intend to purchase. If the game was worth my playtime, I'll buy it for my collection - this is what I'm doing with other platforms / medias (PC, audio CDs).
What Nintendo is doing (banning switch for people playing hacked online games) is obvious, could lead to a lot of cheats relating to online play if not done. Whatever you do with your offline purchased switch is another thing imho.