I am guessing noone is suing discord for hosting these groups were Nintendo might be threatening a lawsuit for hosting these devs.

So not a matter of morals but self-preservation.

If I’m not mistaken with digital download games you are paying to lease them rather than buying them outright. So technically you don’t own the game, you are just borrowing it. This would make pirating the same game you bought more of an illegal act.

Indeed and there is also competition between instances, instead of being left to the whims of a sole dictator of a centralized service.