How extremely weird. Why didn't they just use RTEMS openly? Was it for clout or did they want to circumvent the GPLv2? I can't imagine the Wii Homebrew scene being commercially significant that it would matter.
Think about how many pirates do piracy because they think copyright is unethical, versus how many of them are data hoarders, or just want shit for free, or are reselling shady IPTV boxes on eBay. The former two groups are FOSS-adjacent, but the latter two do not care. Then keep in mind how basically any free shit tends to be almost immediately abused by children with an Internet connection and no access to payment rails.
Homebrew scenes seem like a candidate for doing things "the right way", but culturally they're a lot closer to piracy scenes than anyone wants to admit, at least in front of a court.