Don't get me wrong, being a software developer and a published musician I do care more about copyrights than most of the general public. What I'm saying is it really isn't so bad that you have to buy a license to use a game, this helps development and on the plus side you tend to get better at certain games. Rampart piracy tends to get 3rd party development to steer away from said consoles also.
Rampant piracy has been around since the dawn of software. PC games get pirated within days of their release - does it stop developers? No. The DS can't be more hacked than it is now - does it stop developers? No - it has a whooping library. The PSP couldn't possibly be more hacked - it even has custom firmware. What about the developers? New games still comming out.
And don't give me the Wii example, please. The Wii is just underpowered, that's why developers stopped caring.
Piracy was and always has been a loss already counted in the grand scheme of distribution - there is no such thing as a sale lost due to piracy. From my own experience, I wouldn't even have a DS at this point if not for the fact that I knew I could easily get a flashcart for it. Nintendo made money because the console was "hacked" - yes. A typical pirate wouldn't even buy the game if he couldn't pirate it - he'd get it on a platform that he could pirate on. Piracy, paradoxically, sells systems, and there is a remote yet very real possibility that if the pirate actually likes the game enough, he or she will buy it for the sake of having it.
Since the day floppy disks were invented up to this day people gathered around and shared their software and other media and it's not going to stop anytime soon. If anything, you can add features to the games that are not available to pirates which was not previously possible.
What about bonus DLC for those who register the games? What about online gameplay with proper AP checks? What about pre-order bonuses?
Only a handful of developers use those incredibly effective tools - why? Because they're lazy, that's why.