You can give a person a gun and expect him not to do you any harm, and if he does then there's nothing wrong with acting back against it. As such, the hacks are like guns, and they are not intended for use with CS:S war-lords servers. This is why hackers are punished.

It's not a hard concept, and it's not by any stretch of the definition "hypocrisy". They are intended for private purposes, and if they are abused it's not at the liability of the distributor. Hackers in war lords servers are punished for abusing hacks, but have the freedom to do so in their own servers or games.

There are purposes to hacks other than to abuse and gain an unfair advantage. An example of this would be you and a group of friends trying to improve your game by developing strategies, and understanding the game and other players to another degree.

Going back to the gun analogy, they are both made for what may be considered by some as harmful purposes, but they have other uses as well... and as you know, Americans love their guns.

Let me know if this explanation is too complicated for you, I'll try to dumb it down even further next time.