The question is not whether what the OP is doing is right or wrong. Like he said, it's a fact. You can call him whatever you want, this is not going to solve the problem. What you want to do is to be pragmatic: "ok, so that's how some of the pirates think. How can I make sure to sell them my stuff".
As for your last point, that's one way to look at it. Another way is: maybe we'll come to a point where artists will get a higher percentage of each album sale, since there won't be as much overhead in distribution, packaging, etc.. So one out of four will be more than enough for them to keep producing.