I kinda thought it went like this:
WAREZ = Games from systems that are still "ALIVE" i.e. PS2, PS1, XBOX, GC, PC, GP32, NGAGE, PSP, DS, etc...
ROMS = Games from "Dead" systems i.e. SNES/SFC, Gen, NES, Atari, PCE, WS, etc...
Basically if a game is still generating/able to generate profit for the people who created it, then it is a WARE. Copying it takes money from those people. This is what people get upset about, with good reason.
ROMS have basically had their day, and are now in a strange way, kind of looked at as "public property."
I think that these are the issues/facts in the ROMS vs. WAREZ debate. At least that is my understanding of it.