Presumably this means someone could write something that effectively bricks the console?
You'll need physical access to the hardware during power-up to perform Fusée Gelée and then run your own software – it's not something that can be pulled off over the air nor after the thing has booted up.
So the answer is yeah but you're going to be so hands on you could more easily brick it with an actual brick.
Looks like a win win to me.
If you don’t have one and planning to get one because now you can do home brew etc, Nintendo makes a sale.
If you have one already, Nintendo made a sale.
How does pirated games fit into that as a win. That eats into games sales.