You thought that was cool? SethBling (of Super Mario World Credits Warp fame) did a single nested version of this (in Super Mario World, of course), where he reprogrammed the SNES to play Flappy Bird.
IMO this is what the word "pwned" was meant to describe. When someone has not only exploited a machine, but has literally become it's master to such an extent that they are playing games at that point, abusing the original purpose of the console into this tormented, bastardized version to display memes from a twitch chat, or play a clone of a shitty phone game.
Expanding on what you said, I feel like in terms of personal attacks it should only be used if you could alter someone's life through the accounts you gain access to.
It should be noted that he didn't create the hack, it's something that's been fairly well known. What he did was accomplish it manually, whereas all previous solutions automated it via virtualized controller inputs.
By hand.