Some things:
First, a pirate site getting Bell and Rogers ads is not strange. It is the 3rd party ad service providing the ads, and the site usually has no control of the ads. I saw this on a few legitimate satellite TV forums in the heyday of FTA piracy, where they would regularily get ads from what one could call pirate FTA vendors or message boards.
IKS isn't really an N3 "fix", it is a half fix. It might be as good as it gets.
Not to put words in Hugh's mouth, but I believe he means piracy where a modified or unauthorized (as in the provider has not given it permission to decrypt programming) receiver system is used to access an encrypted pay service, regardless of the otherwise legality or not of the provider being pirated.
Being Bell is a provider legal to subscribe to, using such means to access their service would be piracy.
Yes in the bigger scheme of things, under the law of the land and rules of this board, a "grey market" actual subscription to a foreign service not licensed in Canada is considered as illegal as the above , but should probably not be discussed in this thread.
IKS requires a certain degree of broadband to work, so those with only dial-up might not get anything.
Bell needs a crew of people looking for these things in local papers and such.