They are not infringing on consumers rights to buy and sell the consoles, but the seller who knows that the console has been banned from online services is perpetrating a fraud upon the buyer. You can buy and sell consoles all day long, but transfer of ownership does not change the status of the console any more than selling a broken console (that is outside any hardware warrantee) obligates a manufacturer to make it work again.
It's more like the company is punishing the current and arbitrarily the future owners of a perfectly functional device because they have some project going to prevent copyright infringement within their company, and way above that is consumer protection laws that are just woefully slow to be applied forcefully.
It took many years but Steam changed their old refund policy after a judge in Australia noted how criminal the old one was where they gave themselves permission to steal indiscriminately from consumers seeking refunds and used their imaginary authority to steal from an estimated 20,000 Australians. They actually stole from people all over the world but seem to have gotten away with it everywhere else.
I think their idea is to punish the current owner; but if that is allowed, there also must be some kind of protection for the secondhand market.
If there was some form of serial #check system (like a car's VIN) for the consoles, then it would be harder to re-sell disabled consoles; still wouldn't prevent people from trying to re-sell them, but it would make it more firmly a case of fraud on the sellers' part if they lied about the serial#.
Why can't they just ban by account? Anyone circumventing bans is going to be committing identity fraud or other crimes so shouldn't they be passing it to law enforcement if they want to pursue it.
Switch hardware will likely be resold for decades so it's obviously going to be onerous for consumers that the devices may be invisibly crippled just because they want less copyright infringement.
They don't even need to ban accounts permanently, it's pretty disproportionate when you think in years and decades of a device's life.
