I have noticed an idea that keeps coming up in this thread, and threads like it, that people dance around but don't actually mention explicitly: the idea that piracy itself is a form of social protest (as Machiavellian as it is).
As an American, I remember learning about the founding of my country, how it involved a few upper-middle class types who were upset about new taxation laws. They took it upon themselves to disguise themselves and, dare I say, steal some tea, and then proceed to throw it into a bay. Many others who sympathized decided to switch from drinking tea to drinking coffee instead. The former example cannot be spun in any other way: it is theft and vandalism. But the meaning of both examples is "We are sick of your price gauging and refuse to pay."
Similarly, today we have the entertainment and software industry believing they have a monopoly on the sale and distribution of these items. Some people react by simply not buying, trying to be content with their own collection thus far, going to review sites to "preview" the movie, game, music, or software in question before they buy, to attempt to assure quality if they are willing to pay for something. Others take a more aggressive stance, by attempting to force these companies to listen in the only language they comprehend: money. You will not sell us good quality items at a reasonable price? We'll just find ways of getting it for free then. They lose money, and if they lose enough money, they might react. Unfortunately, the primary reaction is to put copy protections and attempt to get laws passed to prohibit downloading copied software. Yet pirates will continue to pursue even more vigorous ways of bypassing copy protection and continue distributing software illegally.
If it was a simple matter of getting something for nothing, stealing for the sake of selfish gains, the battle would have ended long ago. No one wants to get caught, and no one wants to pay a $250 dollar fine and possibly jail time for the sake of a $10 CD. It is far easier to just download legally from legitimate sites, or go to Wal-Mart and buy it from the bin. So the people who remain in the piracy scene are either: people confident they won't get caught, people who think "I might get caught once but I've downloaded way more than the cost of getting caught once," or people who know it's NOT ABOUT the personal costs. It's about the revolution. Why spend such countless hours developing new keygen generators and cracking software, if it is easier to just buy a legal copy?
Then again, you could develop cracks and keygens for the sake of making a profit too. Buy one copy, crack it, sell many copies at half-price on a street corner, and your investment returns many times over the price spent. But still, the idea remains: the street corner vendor is telling the big companies "You no longer have the monopoly on distribution." The Big Companies either adapt or suffer.
I'd prefer adaptation. Again, I think its great that they are catching up to the new era, with cheap singles downloads, preview before you buy, and whatnot. The Internet has great potential for becoming a great common market for anyone who wants to participate. The Information Age has already begun, people will read reviews before seeing a movie and potentially wasting $10 and two hours. People will go to car review sites to find the honest car dealers with good quality cars to avoid buying a lemon, or getting cheated (Just to note: I think Chevy ought to be burning right now; why on earth did we bail them out? They've been selling junk for years.). People will go to the Better Business Bureau to find which apartments have the most amount of complaints, and to apartment rating sites to find which ones have the best reviews before signing a legal contract for a year. Banks? Which ones have the best interest rates, the best terms, the most stable? Eventually, the market will change, so that if you don't sell quality, and you don't sell for a reasonable price, you will have to answer for it on the Internet.
Another good example: Vista. People bought it, found it to be crap, told all of their friends, posted about how crappy it is on all major computer needs forums, and their sales went into the toilet. Utter failure. But it forced them to change tactics. Windows 7 was released in Beta, and people could (essentially) preview before it was released. People could talk about how nice it was, post their enthusiasm everywhere. Upon release, how many threads were generated about "Is Windows 7 worth the money? Is it good? Does it run well?" I'm convinced from what I've read everywhere about how nice it is, and when I upgrade my computer, I will buy it with my student discount. You won't see me pirating it, because... I'm reasonable certain it will be a good investment, and I support the new tactics.
TL;DR Give me quality and I'll happily pay for it. Otherwise? Burn burn burn.