They all do it just to get the lawyers off their backs. Plex is just a bigger target. Plex can't block anything locally so they take action against user distributing pirated content on a cloud service and are like "Here, we took action, can you leave us alone now?". It would practically be impossible for them to block the distribution of pirated content at the local level.

Plex fucked up when they created their Client-Server model because it allows traffic to run through their servers (the Plex Relay and their "phone home" model). This makes them legally responsible for "facilitating access to pirated content" even though they don't host the content. Jellyfin doesn't have this pitfall since you host everything yourself, they just provide the software.

You're the second person that says " Plex isn't cracking down on pirated content.... but they're banning people who are hosting servers with pirated content." If that's not " cracking down on pirated content" IDK what is....