I think people might be being offended-by-proxy by a sort of status-shift 37s is trying to work into its language. Calling someone "an extortionist" still implies a sort of high-status white-collar cunning-and-intelligence, of the kind you'd expect of a person in the tech industry. An evil person, surely, but the respectable, movie-villain-you-love-to-hate kind of evil.
Calling someone "a criminal", meanwhile, degrades their status to that of a common mugger; someone in the lower class who needs to commit crime to survive, and who doesn't have the intelligence required to come up with a clever crime.
Hackers are generally aesthetes--we tend to value our intelligence, curiosity, etc. more than we value our moral fibre. We can appreciate stories like "A hacked into B to see if it was possible, and reported the vulnerability all responsible-like, but then they threw him in jail! How horrible!" because we think the positive-status from the display of intelligence makes it less likely, rather than more, that they were genuinely seeking to harm the people they hacked.
Because of this, I think we here are scared of being potentially associated with dumb, low-status, lower-class criminals more than we are of just being considered evil. People hire "evil, black-hat" hackers. Nobody hires a dumb hacker.