There really aren't any cons, IF you do everything right. With a hacked V1, you can make a copy of your internal storage and put it on your microSD card. This is called an emuNAND.
With CFW, you can boot from the emuNAND and keep all your hacks, homebrew, pirated games, etc. on emuNAND. This way, you keep your sysNAND entirely clean. So you can go online with your sysNAND and your legitimately purchased games, and never worry about bans.
You can do just about anything you can think of with a hacked switch. You can pirate games, you can emulate games from just about any retro console. You can run Linux, you can run Android. You can overclock, you can use game cheats and mods. You can play music and videos. You can use game controllers from other consoles on it. You can play your PC games on Switch by streaming them from your PC. All sorts of possibilities.
I actually hope this ruling gets reversed. This has been a known factor in physical vs. digital games for a long time. With a physical game, the publisher only makes money during the initial sale. If that person decides that they want to sell their game later, the developer doesn't see any of the money from that sale.
I routinely buy games on Steam when they go on sale for 80%+ discounts. Even AAA titles that are less than a year old occasionally see discounts up to 50%. It's rare that we can say the same for physical games. I expect that part of this is that game publishers have factored resales into the value.
A digital copy immediately has a $0 resale value. It has no further value to anybody other than the person who bought it. But a physical copy still retains resale value, as it can be resold multiple times. Aside from a few exceptions, if a developer sells 100 digital copies, around 100 people get to enjoy the game. Versus selling 100 physical copies, which results in significantly more people getting to enjoy it. Also, physical games degrade, but digital games don't. Without any degradation, there's no compelling reason for someone to purchase a used game over a new one.
Overall, this lost revenue will have to come from somewhere. This will almost certainly hurt indie game studios, as well as the digital storefronts themselves. Epic Games is already far from being profitable as is. I can only assume that this will end in higher game prices, less sales, and lower discounts. Other possibilities could be limits on number of downloads, as that extra bandwidth comes at a cost, or subscription fees for storing your digital game library. Of course everybody has their own opinions, but I'd much rather just keep the games I've paid for, and acknowledge that I can't resell them.