Examples of Harware Hacking activity
Here's a couple examples of hardware hacking. Let's say you have an Android smartphone from the year 2013. This thing is getting pretty old, and the last update you got seemed to slow down the phone a considerable amount. Seeing as how your phone doesn't have modular hardware, your options are limited. Alas, you find a solution online that allows you to install a custom version of Android that will work better than the official update. However, you will have to 'root' your phone for this to work. Since most manufacturers are against giving root access to consumers, you will have to hack your phone to get this custom version of Android to work.
Luckily for you, there is a thriving Android community on the internet, complete with every tool you could possibly need to accomplish any goal with virtually any smartphone. These communities have become commonplace on the internet, not just for smartphone hacking, but for video game console hacking as well. Interestingly, rooting your phone was considered illegal under the DMCA until a law was passed in 2014, making it legal for anyone to gain complete access over their phones.
Another great example of hardware hacking is the recently discovered flaw in all Nintendo Switch consoles in existence. A group of hackers were able to run unsigned code via a flaw in the Switch's GPU (hardware developed by Nvidia) and install a portable version of Linux on one of the consoles. The hacking of this console also opens up the ability to emulate older video game systems, such as the PS1 or Super Nintendo. While this is a boon for owners of the Switch, it is terrible news for Nintendo, as the hacking of these systems can open the floodgates for game piracy
Differing ethical standpoints hackers
Ethically speaking, black hats are horrible. They have little regard for the well being of others and act with complete impunity. They engage in activity that is not only illegal, but to most people, highly immoral as well. They gain unauthorized access to secure systems, steal sensitive data, exploit or blackmail individuals, and disrupt the system just for fun. The laws regarding hacking are quite strict, most likely in an attempt to dissuade future black hats from proliferating.
White hats, on the other hand, adhere to not only a strong moral code, but also take a very ethical approach to hacking. They are the ones attempting to find issues with networks, hardware or software, with the intention of notifying the effected parties. Since this is the case, most of what they do is considered perfectly legal. Many white hats operate as private contractors, or are even employed by government agencies, such as the National Security Agency. They are, as the color of their hat denotes, the 'purest' form of hacker, ethically and morally speaking.
Hardware hackers find themselves in a bit of a grey area, however. In the case of hacking video game consoles, most people would consider it completely ethical (and moral) to modify a gaming system. But, these modifications, regardless of the original intent of the creator, can sometimes be used to pirate games. This is highly illegal, and extremely unethical. As a general rule of thumb, so long as the hacker isn't attempting to create monetary gains from their work, they are typically safe from legal ramifications.