@Matt I think though he's forgetting something: some people will always pirate. People illegally download movies for example - it's not that they think the movies suck, they just don't want to pay for them. The "why pay when I can get it free" mentality is hard to beat with just 'better product'.
Not saying there's no merit to this argument - just saying you can't by any means stop it by making better product. Especially if piracy actually ends up hurting the industry - this means less money for these better ideas. Not trying to say the games industry is collapsing - just sayin'