Piracy is a dual edged sword, and there is a definite duality to it. For one, if your product is being pirated a ton and used a ton, then you know its a good product, however you need to market it right to get your money. Steam, while I hate how steam crashes on my computer almost every time I get a stupid ass steam update message and sometimes it straight up locks my system, it does have its pluses. For one, I register all my games with steam and I never have to use a CD again. I can simply download and install the steam client and then go to town, and let it download and install all my games owned by steam. I need more HD space, I can uninstall and then use steam later on to reinstall if I want to play again. I think that will be the future of gaming, that and paying monthly service fees to play. Which is the trend of the MMO, and why some companies like Blizzard and Sony for example have made 100s of millions simply off subscription fees.
There is also a gray moral line of piracy and I will give a few examples of where I think it is OK.
1) I own 250ish vinyl records, and it would take me a really really long time to download and rip all of those to my computer. I already paid for the record and I already own it, so I don't always feel bad downloading someone else's rip. It saves me the time of doing it myself. Yes bands still sell records, and yes I still buy them - I am a music geek like that
2) When licensing becomes a hassle. I once spent hours and hours on end setting up a license server and a network deployable image of Autodesk software, which could only be authenticated online and only with IE. It got so damned annoying that my organization spent around $30k in software licenses and I had to jump through flaming hoops to get their licensing software to work right so it could verify it wasn't pirated. For grins I scoured the torrent sites and found every single app we just paid $30k for, cracked and hacked and ready to install with no hassles. If they were to audit us and find out I had a crack running, I could simply show them the factory sealed software on the shelf with the PO saying they invoiced us for $30k. They go to all this trouble to stop piracy and really they just make their product harder to support. That is just one example
3) When you are a consultant, and you need to show your client how things work on a grander scale you can not do so with demo versions of software, nor can you afford to pay the $50k for an enterprise site licesnse of the product. however, you do want to sell them the product because it fits the needs and gets the job done. So, as a consultant you will turn to a pirated version that way everyone wins - A) the consultant doesn't pay out of pocket for a full functional software package B) The client gets a full hands on demo of the product being pitched and likes it and buys it C) that software company gets their money from the consultant suggesting the product and client purchasing it - Win - Win - Win situation (office reference).
Piracy is bad if you are just plain out stealing. I will download music for free and if I truly like the band I go buy their CD/record from them directly off their website and not through a retail chain or through the record label because that way they get all that revenue them self. If I don't really like it, I delete it and move on. I am a big fan of try before you buy, but I actually go out and buy. My friend who is in a band and helps manage a independent record label has had this discussion with me numerous times. I always told him that I download it first for free and if its awesome I go buy it. I like have the album, the album cover and the insert and I like having a copy on vinyl and I keep my digital copy for CDs and portable MP3 players.