I'm a bad pirate

You are a bad pirate if you fall into an obvious trap and get caught. There is nothing bad about buying something you like. Many pirates do it... once in a while.

Yes, many people pirating games are still buying a lot of retail games too. They can test before buying what they like.
Usually buying the games we really like, or games we feel like developers deserves our financial support. (we don't buy/play shovelware, but kids are doing it in our place, it should be financially good seeing they are doing a lot of them)

Of course there will always be people who only pirate everything.
It became too easier with DS and Wii generation, even 5 years kids have their SD full of games, even oldies have them (I know someone 80+ years old with a flashcard), they don't understand anything to hacking but they just have their flashcard.

I think next gen will return to the hard way (mod chips, lot of wires, underground things) and will be less popular.
People will start buying more games or just stop playing with new consoles. (They have plenty of games with older console already).