It has nothing to do with what the program is used for. It is the idea that simply hosting code that could be used to do something illegal with is itself illegal. This isn't a piracy or copyright debate, it's a freedom of speech debate.
I didn't say FoS was absolute. That's why it's an interesting debate. But the piracy part of it is fairly irrelevant when it comes to the question, "Is it illegal to host code that can be used for illegal purposes"?
They should just admit that they like piracy, nothing wrong with that.