Most people I know that pirate games do it because of the cost and quality of games lately.
Demigod is actually a good example of this. I paid 40$ for a game that was not ready for release. I saw it at gamestop, liked the box, the fact it was 40$ (Most new are 50$) and thought it was unique. Now, a month or so later, the game is finally patched to a mostly working version, and only needs a few tweaks. Now, most game companies would have left the game in the mess it was. Atari did that with Act of War, and Axis and Allies. EA did it with both CC3 and RA3, and I'm sure a few others. Why would I trust them with a 50$ purchase that isnt returnable, and I have no fallback plan. Its the same as Hollywood. I saw the new Terminator movie, and it was horrible. I wasted 10$ that I cant get back. Next time, I'll download the movie, if its worth seeing, I'll head to a theatre. a PC game is an investment 5x as much, so downloading the game, seeing if its good and all, and then buyingit if it is good, is a common practice with my friends. Unfortunately, most games arent good.
I used to buy games, then if they sucked Ebay them. I still do that with 360 games a lot. I usually took a 10$ loss, but with a little research and deal shopping, I could test/rent a game for a week or 2, then sell it if it doesnt fit my style or if its just crap. I cant do this anymore with systems like Steam and Impulse, since even my disc copy has to be tied to my account. Empire Total War is a good example of this. I loved medival 2. ETW was just not as good, nor my style. It may be the games fault, or my own. Either way, it required it to tie to my steam account.
The point of this wall of text, is "average joe" pirates dont crack the game distribute it. They download it because its a small investment of time and effort. A smaller investment then the 50$ that most companies charge for piles of crap they call games. A few companies stand out as good (Relic, Stardock, etc), willing to support their product, fix their mistakes, and enhance the game over time. Too many companies overshadow these with bad games, or outright broken games they dont support.
Overall, I think Stardock tries. They provide a decent product, good support, and their view on limiting pirates from playing online is a solid one. The only real complaint I have is impulse doesnt allow you to transfer a CD key to someone else. That should be allowed by all digital distributors, for free.