Taleworlds would be completely within their rights to shut this down, and pirated clients being able to play, and breaches of monetizing policy only aggravate the original offense, which is evil reverse-engineering for evil purposes by evil people.
It's surprising how many here would embrace criminal behavior when it suits them, damages someone else (typically a big bad company), and then try to rationalize this with flimsy moral justifications.
Now, a smart thing for Taleworlds to do in the aftermath of shutting this down, is to set a date for custom server release (something sooner than Soon). This would both appease the mob and pre-empt further cases of hacked Bannerlord servers spreading across the internet.
Everybody (and not only evil haxxorz) would start making persistent worlds and all of you will be very happy grinding with your friends and getting banned for racism and then writing unconvincing unban requests.