Okay, time for a personal opinion breakdown.
Do I like Pyromancer? Yes, actually. I wouldn't have donated literally hundreds of subs to his channel otherwise.
Do I condone Pyromancer's more erratic and upsetting behavior? No. I don't know the man personally so I don't know the extent of what he has to struggle with - but if you're working in the public sector you need to try your best not to have a major episode in conflict with your audience, regardless of the circumstances behind your performance.
Do I think Pyromancer is in the wrong for his violation the TOS. Yes. That's not an opinion, that's a fact. 3rd party tools are a violation of ToS. He puts his account at risk for broadcasting it. If he gets suspended or banned because of it, that's ultimately on him. It's nice that in the best of times people can stick their necks into the guillotine and trust that people won't pull the lever, but these are not the best of times.
Do I agree with Pyromancer being persecuted for his use of shaders and mods like chat bubbles? No. I think it's a minor thing, and presume most people realize that. The internet tends to put a microscope on the most obscene and hyperbolic of people and statements. The most prominent mod I've seen that I'd like to see implemented in the current UI are the Chat Bubbles. I think they'd be a great addition to the game for players, especially seeming they exist for NPCs as is. That said, till it's in the game officially, using it is a risk, I don't recommend it.
This isn't the first time the good faith between players and developers were strained because of the bad actors among the players. These forums alone are often an example of bad faith actors ruining things for others. But there is no need. Those who are violating the ToS in good faith (meaning they're not trying to harm nothing or take advantage above other players, or gain an edge in fights. They're just trying to improve their personal experience), in my opinion suffer the most when this relationship is strained.
I don't hold judgement against these people. They are breaking the rules but they're not hurting/judging anyone. The risk is theirs to take if it matters that much to them. But it IS a risk, especially in this climate. The rules are clear, even if some of those bad faith actors want to take the statements to their hyperbolic extremes. If you don't want to take a risk for your account. Don't. Take. The. Risk. Use common sense and move on.
Otherwise, there are some people with some real vendettas out there that will take this upset over current events and see just how draconian they can get the GMs to be over the rules.
I still count this as part of the inevitable culture clash we get every time we get a larger wave of people adopting the game at a time. It's not the first time I've had to make statements to these effects either. Hopefully things will calm down soon and actions will get focused on the most egregious people using hacks and cheats.