Plex's (almost) entire user base is pirates, it's the same with Kodi, Emby and Jellyfin. I don't know of anyone that has legally ripped all of their DVDs and Blu-rays themselves, it's just too much of a pain in the ass, and I know multiple people that have run servers for years.

Plex is just covering their own asses from getting sued for "enabling the distribution of pirated content". Kodi and Jellyfin aren't big targets since they aren't a business, they don't sell a product, Plex (and Emby) does. Kodi and Jellyfin can't get sued (or it doesn't make sense to sue them) because they have the disclaimer that says "we make this for streaming content you own, we don't host anything, we don't support the piracy plugins, do what you will with it, we're not responsible for your actions" but since Plex can route traffic through their servers (the Plex Relay) and the fact that they offer PlexPass puts them in hot water.

Instead of Plex blocking the specific users based on email, specific IP or something else specific to that account, they said "fuck anyone using Hetzner, regardless of whether or not you're violating our ToS."

I've paid for a lifetime PlexPass and have actually paid for it a few times over since it took years before I finally bought one. Yet, I get treated like I'm some mega-pirate making money off of them. They don't give a shit about their users, all they care about is money and not getting sued.