You can't deny that. Deal with it and come up with new ways to profit. Anti-piracy groups use bullshit arguments to strengthen their case. Of course, since no pirate or college kid believes in those arguments, they're turned off to it. To stay in business, they must pass the cost on to consumers.
Honest citizens end up paying higher prices, while thieves take advantage.
There is no evidence to support this. You can only guess. More importantly, people will not USE your software if it's shitty, and if they DO use it, then they will support your company and be more likely to pay not only for that product, but future products. If there were no such thing as piracy, far far fewer people would EVER play the latest games, listen to the latest music, etc. They wouldn't spend the money for it.