Which is why Pirates and hackers are not the same. What you describe is what pirates do: copying without adding anything new. So you should replace "hacked" with "pirated" in your sentence.
Hackers tend to unlock the system, improve it.
If it were music, I would see the hacker as a talented DJ, able to create new music from samples of another musician, while pirates would be the people who simply rip/download mp3s.
I don't see why game developers would think differently. I don't work in the gaming industry, but I can tell you developers in any company make a clear difference between clever hackers and stupid pirates. I don't work for Sony, but I could bet with you that there are a few people over there who are impressed with what hackers have accomplished with the PSP. As a professional programmer I'm always impressed when someone use my work in a twisted way to make the program do way more than it was initially supposed to do.
Someone who codes an ISO loader clearly knows what this will lead to. But it's not because a few guys created ISO Loaders that all hackers support this.
U cant say "Hackers tend to unlock the system, improve it.", 'cause is not they improving it, there are some hackers that just hack to see if they can actually hack... as well that just hack to get more liberty of the system, piracy is just the ppl that copy games, but most of pirates just know to do that, copy stuff, but a hacker or programmer is the person who does the homebrew programs or to code an iso loader, so you could say those are hackers/piraters super hybrid. But well, could say that pirates are not hackers (wich is true) but piraters come from hackers, The hackers are the tree, and the pirates a branch