pay for every (hacker developed) pkg on the console? please stop smoking crack. in the u.s it is legal for a person to jailbreak their iphone and use it as they see fit. do people with jailbroken iphones buy every single app that they have installed from somewhere other than the app store? heck no!
hacking devices is not just about video games. for the most part it is about adding features and functionality that was either left out due to costs or locked out of the firmware of lower priced devices. (most ti calculators have the same cpu, but software features of 83, 86, 89 are different.)
some "gaming" graphics cards and "workstation" graphics cards have the same chips also, just different firmware for the uber priced workstation cards. however hacking video game consoles may be done more so in the interest of video game pirating.
if hacking devices you own was logically illegal, then modifying your car's intake and exhaust for better gas mileage should also be illegal. after all you are hacking a huge electro-mechanical device in a way the manufacturer did not intend.
if you honestly believe that hacking your personal property is only to create business for a crappy company, then i have some ocean front property in colorado to sell you.