If you are interested in this kind of multi-level attack, I recommend watching this[1] really fun talk by dwangoAC, which he originally gave at DEFCON 24. He is the owner of "TASBot", a custom controller interface for sending high-speed (and occasionally reliable) controller input into a SNES.
In this talk, he uses the controller interface on the SNES to send commands to a Super GameBoy, which is running a real Pokemon Red cartridge. Commands are sent to Pokemon Red to activate an arbitrary code execution bug to write a bootloader that receives the rest of the attack program at high speed. Then - form inside the GameBoy environment - he takes over the Super GameBoy and gains arbitrary code execution on the SNES proper.
(for a finish, a Twitch chat client is written into RAM on the SNES that uses a custom network protocol to send requests over the controller port, so the livestream audience can ask questions live through the SNES).
Not only is there a bug consistent enough to get arbitrary code execution in the game, but to also be able to reliably breakout of the emulator and literally reprogram the current game all in RAM to something completely different.
I can't seem to think of words that would do what he did justice. It's amazing.
You thought that was cool? SethBling (of Super Mario World Credits Warp fame) did a single nested version of this (in Super Mario World, of course), where he reprogrammed the SNES to play Flappy Bird.
IMO this is what the word "pwned" was meant to describe. When someone has not only exploited a machine, but has literally become it's master to such an extent that they are playing games at that point, abusing the original purpose of the console into this tormented, bastardized version to display memes from a twitch chat, or play a clone of a shitty phone game.
Expanding on what you said, I feel like in terms of personal attacks it should only be used if you could alter someone's life through the accounts you gain access to.
It should be noted that he didn't create the hack, it's something that's been fairly well known. What he did was accomplish it manually, whereas all previous solutions automated it via virtualized controller inputs.
In this talk, he uses the controller interface on the SNES to send commands to a Super GameBoy, which is running a real Pokemon Red cartridge. Commands are sent to Pokemon Red to activate an arbitrary code execution bug to write a bootloader that receives the rest of the attack program at high speed. Then - form inside the GameBoy environment - he takes over the Super GameBoy and gains arbitrary code execution on the SNES proper.
(for a finish, a Twitch chat client is written into RAM on the SNES that uses a custom network protocol to send requests over the controller port, so the livestream audience can ask questions live through the SNES).
[1] https://www.youtube.com/watch?v=s-bKWT9fj8Y