To play devils advocate, 26Region did use preestablished characters designed by other creators, creators mind you that went through days of rough-drafts in order to come up the character that would appeal to audiences, not only that but have a back story. Hence why there are fans of said character. Would that be piracy, the characters he used aren't exactly public domain. No one would give a shit if its a generic space faring bounty hunter fucking monsters, or witches fucking demons. We've seen those janky animations from those early creators using parody characters and we know it doesn't tickle our balls. But he profits not only from his animation, but our perversions of our favorite characters design and developed by other people that we know and come to love. You have to give credit to those who want to step out and make their own characters, even if its like Noname55 with his "In-Universe" Assumi, or like StudioFOW with Subverse. Who would you rather see, a nerdy bimbo with no build up, or watch Velma from Scooby-Do get fucked by Frankenstein.
In any case, support the guy or don't. We are all hypocrites in one way or another.