Home taping is killing the music industry!....err, wait....
(sorry, just had to say it, surprised no one else did)
I use to pirate a lot back when I was young and broke as hell, it's not like I was taking potential money away from the industry cause I didn't have any damn money.
These days I generally only do it if the game comes with hostile DRM that I don't want on my computer, which is kind of sad in of itself, pirating use to net you an inferior product, but as DRM grows more hostile pirate copies actually become preferable

Also, I use steam a lot now, since I can get indy games for under $5 (and oh man, some of the sales ^_^). People ***** about the online aspect of steam, but you can't really have digital distribution without being online, and if you're offline you can play your single player games in "offline mode" anyways.
As a final aside, one of my goals in life is to become an indy game designer, and I'ma say this for the record now: If you can't afford a few bucks for an indy game, feel free to pirate games I make, because chances are you're worse off then I am. Frankly anyone who would launch a million dollar lawsuit against a poor single mother for pirating something needs to be dragged out into the street and beaten.