So what Cryptopia is saying is that if they are hacked and YOUR deposits are stolen from them, they believe the thieves should keep your deposits and they (Cryptopia) have no obligation to go after the thieves to get your money back or repay you for what you lost.
Why would anyone want to deal with such an exchange?
Apples and cucumbers. In case of an exchange hack they can't just fork themselves and make stolen coins reappear out of thin air. And if you're referring to the DAO fork - ETH and/or slockit didn't really go after the thief (at least I'm not aware of any law enforcement action) nor did they repay anyone out of their own pocket, which are the two common actions when a reputable entity loses customer funds. The fork - bailout - makes everyone pay for it.