I used to pirate because it made everything free! And I used to be poor. Money isn't really a problem these days sooo...
I don't do it so much now and buy as much as I can (within reason). These days if I pirate something it's either because it's now out of distribution, extremely hard to find or severely overpriced.
My music piracy has pretty much stopped, and I don't think I've done any since about February and have been buying up a lot of the pirated stuff that I actually like or listen to. For the music I like this usually means hunting around on the internet for ages finding some obscure publisher in europe/canada/whatever and importing it (as long as the price is right), or hunting around on online market places.
For PC games, I try and buy where possible. I usually buy games for my PC, but there are a lot of games that are now out of print that I want to buy, but just can't find anywhere. If I want to play these I usually have to resort to piracy which makes me
When a "modern" game comes out that I want then I do buy it.
I never buy games for my DS, they are soooo overpriced.
The Wii games are also uber overpriced (even when discounted :|), so it's very rare for me to buy anything for it, however I've not done any piracy on it.
For movies/dvd's/etc, I've not pirated any of them since sometime last year. DVD's have become super cheap now, which has meant my DVD collection has gone boom
I suspect that piracy does have a bit of an impact on some distributors, but nowhere near as much as people make out. When I did used to be a big pirate, nobody actually lost any sales from me. There was a lot of stuff that I pirated that I wouldn't have bought even if it wasn't available to pirate. If that makes sense..
I remember reading about some stuff with World of Goo, where the guy that made it could keep track of who was playing it (through the online stats). I believe it turned out something like 2 to 3 times more people were recording stats than had actually bought it.
I'd say that price reductions on computer games would cut down on the piracy there. PC games aren't that bad nowadays, but games console games are a rip off (they always have been though, I remember N64 games used to be uber expensive).
Dunno what you could do about music or DVD's though. Shoot the pirates?