The whole Wii hacking scene has been so underground BECAUSE NINTENDO DOESN'T SUE HACKERS. The Wii hacking scene is MUCH larger than the PS3 hacking scene, especially when it comes to piracy (after all, the Wii was hacked to play backups within a matter of weeks of it's launch) - but Nintendo has never made it a huge media and (il)legal ordeal like Sony has done - that's the difference. Over 1 million people (actually it's probably not that many, since many people have been banned multiple times) have been banned from Xbox Live for having modded consoles, yet you don't see Microsoft tracking down and suing c4eva for releasing the firmware that allows you to do so. Sony 100% brought the attention upon themselves - the whole hacker's conference with "Hotz' little fanclub" has been going on for years, and the people you are talking about (who are in no way affiliated with George Hotz) are the same people that hacked the Wii, and they first demonstrated it...at the same conference, several years ago - but it took until your FF4 and DKCR experience to take notice.
What graf did is have people send him eboots from retail and PSN games, in order for him to decrypt them and release tools for others to do the same (among other things). If he was a pirate, surely he would just download them or copy them from a disc himself.
PLEASE actually TRY to find out some REAL information about the subject - don't just wait for myself and others to spoon-feed you everything so you can immediately make assumptions and just argue against our opinions (and the facts).