Yeah sure. I have an R4. I know what most people use it for. Maybe you're perfect in every way and have never used it for piracy. Maybe you have that kind of self control, but lots of people don't. I don't want TCP to be responsible for someone being able to pirate games that they were not able to before. Officially, TCP is against piracy anyway.
And if I were to, say, install a mod chip in a PS2, it could also run homebrew. So CycloDS and most modchips fall into the same category. (I know homebrew with modchips on some consoles haven't been figured out yet)