But using a third party DNS circumvents the block, so they went after them too.
Web browsers however (unless they include a VPN or 3rd party DNS) don't allow you to access sites blocked by your ISP. Same goes with ethernet and wifi cards.
I'm not saying I agree with it but that's the logic.
It's one thing to say that you can't CNC machine guns for customers of your CNC-on-demand service, it's another to say you can't sell CNC machines because someone might use them to make guns.
Here the DNS service is being told they can't direct traffic to pirate sites, not that they can't give out tools (e.g. browsers or local DNS resolvers) that could be used by someone else to direct traffic to pirate sites (or could be used innocently). Your examples are all the latter - tools.