Quite a thorough post there man, and while I generally do agree with you, I feel like that you are cherry-picking when it comes to piracy's effect on sales. What I mean by that is of course a game like CoD, GTA, AC, etc and most Nintendo games will be less affected by piracy simply because those are a big established franchises with extreme level of mass appeal in most cases, so to me, pointing out how much these games sell despite piracy does not quite show an accurate image.
However, I do agree that piracy's effect indeed is exaggerated, and it seems to only become a problem when people start purchasing a system only to pirate, like PSP and PC, which both have shown a struggle to sell a considerable amount of software despite having a rather large install base. For PSP, it was a very unique case, because most people didn't want PSP without the prospect of hacking, so it was mostly either sale with no software sales afterwards, or just no sale from the beginning... And I personally do believe Vita is the case of PSP without hacking, and the ~6 million sales in almost two years is a testament to this... that and the surge of phones and tablets gaming of course. As for PC, the initial cost of the hardware is usually so high, most people builds their expensive rigs with the thought of pirating to compensate, though the popularity of Steam and its great sales have sort of created a large PC loyalist who actually invest substantially on PC software sales.
As a Wii owner myself, I do agree that Wii has a bunch of overlooked games though Nintendo games usually tend to overshadow third-party games and that's typically the case with Nintendo platforms, and Nintendo themselves doesn't seem to care and promote third-party games anywhere near Sony and Microsoft do. However, I truly believe that motion-control as the only input is not a good idea and in most titles it feels like tacked on. So after the initial hype and excitement of the Wii motion controller and its subsequent peripherals such as Wii Fit, the industry / people realized that normal controllers are still the best input which led to an abrupt Wii demise, Nintendo's answer, Wii U GamePad, was not nearly appealing enough to capitalize on its uniqueness like they did with the wii-mote. So Wii U is currently in this awkward situation of neither being able to compete with the next-gen and current-gen platforms, nor having any truly unique features that set the system apart from the competition. You also have to consider that The Last of Us just recently came out on PS3, with games like Beyond: Two Souls and Gran Turismo 6 also being set for this year, then add to it all the big third-party games like GTA, COD, AC, Batman all set to release this year, all that in a less expensive package, then I guess you get to see why the Wii U trash talk is not so highly unjustified. The low sales and Nintendo's attitude to address the present Wii U issue most certainly don't help the situation.
Ahhhm, I guess that last part was a bit off-topic, but anyway, I would like to finish it with saying that I actually believe a large majority of people's action are tied to their morality and guilt. Organized religion in general is mostly used as a way to justify immoral acts and thoughts; a lot of sexual related topics such as homosexuality are mostly tied to people's conscience and their morality; people's immediate disdain on piracy and the piracy versus used game argument can easily be categorized as largely a moral and guilt based act and opinion. This certainly needs more elaboration and it does lead to a lot of subjects in which I am highly interested in discussing, but I don't think this is exactly the right place for further elaboration on this topic of morality, except that I truly believe many people who actually pirate are actively bringing excuses in order to convince themselves as non-thieves and dissociate themselves with guilt.