If I remember correctly, the freeloader was an issue for Nintendo (in part) because it was an unlicenced software product that ran on unmodified Gamecubes. This meant that they had to make an example of them in order to protect their licencing agreements with all third parties. Simply imagine what would have happened if Nintendo let the Freeloader go unchallenged, it is likely that third parties of questionable quality would produce unlicenced Gamecube games; this would likely result in Nintendo having dozens of expensive lawsuits to protect their licencing terms.
Now, the reason why Microsoft and Sony typically get demonized from their 'evil' acts where other companies don't get the negative attention is because Sony and Microsoft have been involved in far more high profile 'evil' acts than everyone else ... This may not be entirely fair being that Sony and Microsoft has several divisions, and each division is as large as their competition in most sector.
