Apologies, I was just making a post to hit the Member role limit since GBATemp doesn't let you message others until you make 5 posts. I couldn't think of anything that would contribute to any thread so I made a generic response here. I wouldn't consider piracy to be worth it in the Xbox scene...
I don't think Microsoft will ever make a handheld console. They've made some handheld products (Windows Phone, Zune) and we saw how those all played out.