Hip fire was nerfed because it's a sniper. Snipers are supposed to be aimed with the scope. This prevents the EoR for being used as an all-purpose weapon like it was before the update. If you don't want to risk missing shots, then use the sniper as intended and aim with the scope.
These combat changes were very much for the better I said my piece about it here: https://www.seaofthieves.com/forum/topic/80722/thank-you-rare-the-weapon-changes-are-great
Quoting what I said about the EoR there:
Oh the Eye of Reach... The changes here are perhaps the source of the most controversy. Prior to this update, the EoR was superior to the other guns in pretty much every way. It could function in the way that a pistol does, but with even higher damage! I know this, because I used the EoR in this way for the longest time. And I frequently asked myself "Why am I able to use a sniper this way?" It was definitely broken.
The change to the hipfire accuracy was much needed in order for the Eye of Reach to no longer be a functional alternative to a flintlock. People seem to miss the fact that the EoR was never supposed to function this way, because it is a sniper which is meant to be aimed via the scope.
On the flipside of this, we see increased bullet speed and the removal of damage fall off from long distances. These changes were very important in reeling in how overly functional the EoR was, while now making it a very good sniper. This is a role that no other weapon can fill. The EoR was not meant to be a jack of all trades, and the frustration now comes from the fact that players can no longer use it as an all-purpose weapon, but its evident that the developers wanted to remove that overpowered multi-functionality.
Sorry, but the hip fire needed to go.