I agree, this entire thing looks very blown out of proportion to me. It’s not the first time and not the last time there will be malware in a brand new game torrent on 1337x.
This exact situation has happened before with a new game torrent that had malware, torrent eventually got taken down, and nobody raised a huge fuss other than not to download that torrent.
I would prefer nsp/nsz since those are eShop dumps and intended to be installed into the system.
Xcis are gamecard dumps and weren’t intended to be installed, so the installer has to modify it in order for the console to pick it up as a digital copy.
Basically, the nsp is just cleaner - you install the game without any modifications, and just register the ticket for it to the system.