I have met folks who pronounce it like "Juarez" but where I grew up it was "wares." IMO the latter makes much more sense because it's likely derived from "software(s)". But so much discussion about warez was nonverbal, it doesn't surprise me that the word took on different pronunciations.
I had never considered software(s) as a potential root, and had always assumed it was related to the idiom or a vendor selling their wares, just goes to show how tricky English can be:
"software", "cookware", "earthenware", "hardware", "tinware", "glassware", et al. are all various kinds of ware, notice. Tangible ones can often be found housed in warehouses.
