>Let's forget for a moment that, as you tell all those people your sorrows, you will in fact figure out that your product failed not because of piracy but because the product was not giving adequate value for its price.
That may be, but that doesn't mean that people have the right to unilaterally decide that the price should be zero against the wishes of the seller. They may have the technical ability to do so, but that does not make it moral or ethical to do so in the most general case. I'd like to have a lower electrical bill. Electricity is a non-tangible good, like bits. Does that mean that I should be able to tell the electric company to shove off just because I think they charge too much for electricity? Why is that any different?
If my software fails because nobody wants it at the price it's at then that's a signal that I should lower prices. If my software fails because a large group decides to void the social contract and get my software for free because they disagree with their pricing then I have every right to get angry about it. The software I produce took time and money to produce. It's okay if you don't want to pay for it. Then don't use it. You don't get to have all of the benefit for none of the cost. That's the part that's the most infuriating.
>Software piracy is a solved problem.
How do you make that logical jump?
>You have eyeballs/ears which you can easily turn into wallets.
Not if people are used to and can continue to get the software for free. That relies upon the generosity of some other person down the line to actually pay for the software. Some companies may choose to make that decision. Good for them! But the assumption that all companies will or must or otherwise be ethically or morally bankrupt is a bad one. I'd love to spend all of my time building software for others and let them pay what they want for it, but I have to eat and have a family to support.
Software piracy doesn't hurt big shops or new developers as much as it hurts the smaller guys. Big shops price it into their software costs, and as you said, industry standard software (Office, Photoshop) rely upon it to bring in new users because their target market is saturated. New developers are just happy to get their name out there in many cases - it's a cost of doing business that they can afford.
The small shops in the middle get it the worst. Not enough name recognition to be an industry leader yet enough people that feel entitled to their software for free. The vast majority of them can't win and fold. Is that what meritocracy is? Subject to the whims of an entitled core of freeloaders?