There is a gray area, he himself pointed it out. Specifically using some forms of shaders and how you apply ACT to your experience. It's just not what people think, it's not him endorsing or turning a blind eye.
He pointed out that it's best to still maintain a "don't ask, don't tell" policy over them and that people caught will, obviously, be punished. He understood that ACT had its benefits for the raiding scene, but in no way did he endorse them. He just said "I can't stop you from using them, but just don't be dumb and use them for nefarious purposes that will get you banned". That was the gray area he put up: "If you use them, keep it to yourself".
...naturally, people can't keep it to themselves. And that's why repercussions on streamers exists: because they keep acting like they can stream with them on under the guise of "Oh, I'm raiding, I'm not doing anything wrong".
As for shaders, unlike the obvious stuff where mods modify the game files themselves, shaders can just be seen as something that SE didn't put into the game, so it can trick people into thinking that the game really looks like that. Generally what people who take screenshots with shaders do is edit out the copyright line so it doesn't get mistaken for an official piece of the game.
However, even though all this is more or less correct (I'm also no authority on this), it is true that people using and talking about specific kinds of add-ons led to the game implementing them in their own way and reconsider game design. Which on that note, I am all for.
I'd like mechanics to be a bit more recognizable when you have to distinguish them from other markers and from terrain.
I'd like certain parts of the gameplay to be made more visible. I've made a suggestion thread on the UI forums to make the yellow markers for gathering and crafting another colour because they clash really hard with the yellow-tinged map.
I'd like waymarks to have a different font, because that font isn't intuitive to me. And unfortunately, I have a bit of a hard time telling C/3 apart from D/4's colours, one just happens to be lighter than the other.
I'd also like more support for other languages or allowing subtitles for people whose native language isn't EN/DE/FR/JP, such as Spanish or Portuguese.
And much more that is currently available with 3rd party tools, but is otherwise unfortunately invalidated by virtue of being illegal.
Yoshida says to not have a witch hunt because he likely doesn't want to be overwhelmed with minor-case reports, and some instruments are more about QoL for people with problems than people actively trying to get an advantage. Hence the idea of the "gray area": he just doesn't want to care about add-ons that don't have a big impact.
But until those get properly implemented and worked on in FF14 (we do have colourblind mode, it doesn't always work because it's oddly rudimentary and just mutes out colours rather than address the problem of making things distinguishable like we can with changing Friends/FC/NPC name plates)... yeah, it's always going to be a tug-o-war.

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