First off, caps locks is cruise control for cool man, but you still gotta steer with cruise control, (i.e. cut it out with the damn caps)
Second, the problem is exactly as you said - it is an "Over-generalization." Unfortunately, WADs are too closely associated with piracy when it comes to the Wii, since most n00bs who discuss WADs mean a free Virtual Console game or something. We don't want that crap cluttering up the forums, because as we have known, Nintendo is one of the largest anti-piracy movers of all the gaming consoles, and they've been that way for a long time.
They already hate us for the homebrew channel, and for circumventing their protections, Team Tweezers has already tried the rational route of speaking to them, and they weren't too nice on their side. We don't need new people who come in asking for WAD help "really, I'm only installing something for homebrew, i got it from this url [insert generic piracy website here]" adding to the mess.
People in the Homebrew movements of all the consoles hope to eliminate the negative connotation of homebrew, and separating us from pirates is the first, and most important thing to do.