The devs who made the iPhone game "Tap Fu" have a very even-handed blog post about piracy, specifically as it relates to iPhone apps and games. It's a sobering report: nearly all of the high scores logged on their servers were from pirated copies of the game, and exactly 0% of the offenders went on to purchase a legit copy (which, by the way, is one of the typical defenses you hear for pirate behavior).
Now, everyone has their own line that they won't cross when it comes to piracy (e.g., "I will download music but not movies or games," etc.) and I try to stray from being hypocritical before laying down judgment on someone else's behavior. I have plenty of hacked ROMs, for instance. Note the screenshot of the hacked Apple IIe version of Archon...a game, btw, that you can download right here and it will run natively in Windows XP! (This is not the Apple IIe version, obviously. For that, you will have to go here.) So you can enjoy classic Archon while you wait to pirate a copy of Archon Classic.
In defense of piracy: many of the ROMs that we received from publishers in my GameTap days were the HACKED VERSIONS that they downloaded from the Internet! In other words, without the pirates, even the publishers would not have access to their own moldy IP. So think about that.
But to be serious for a moment, I totally understand the desire to pirate stuff -- why pay for something that you can get for free? However, I can't come to terms with the fact that a business model built on a foundation of piracy is ultimately unsustainable. And as a content creator, I find it hard to justify.