Well, I guess we are not yet done, because I really like the point you raised.
I think a lot of this has to do with the economies. In Russia and Asia, people don't make enough to even buy in at the level we do, and if we sell at their rates, it's brutal because it sets lower prices here.
The major software vendor I work with manages their price structure across the different regions. That's not as possible with games and common media because ordinary people don't see that dynamic, and or the complexity of the deal makes mass sales difficult.
Your characterization of the crowd here may be accurate, however I've been around a long while --before the site was filled with clowns like it is now. I'm not here advocating that piracy is good. It's not. But open is. The PC gaming scene is difficult because it's just a mess, but I don't think that's all piracy related. Sure, there is a big impact there, because it's just not hard on a PC. Never has been, never will be.
Honestly, gaming on PCs just isn't anywhere near on par with consoles. That's where the core driver behind the poor sales is. Hell, most people are moving to laptops and what I would characterize as poor gaming rigs, with the real PCs being used for higher end applications, CAD, VIDEO, etc...
The other impact is casual gaming on little devices.
I seriously question the broad applicability of big scale game productions. A good friend of mine just published for iPhone, and it's in the top 80 or so UK charts, and it's going to make a serious amount of money for the fraction of the dev done on a larger console project. Small team, low investment, mostly sweat equity and paying for some art and promotion, and it's looking good.
Nobody is "paying" for the piracy paradise in Asia. We are paying for the developments, which are profitable, and selling in the markets where they sell. Dealing with the markets where it's not sold is a separate problem. Sure, they are leveraging what is done, but then again, if they couldn't, the numbers wouldn't change, so the demand there is a opportunity that's not yet been cracked, not some justification to lock things down to the point where people can't own their stuff.
We've got politics as the problem there more than anything else.
One more thing on reverse engineering. I personally oppose software and business process patents, and restrictions on reverse engineering. Licensing content is fair game, and that's where the value is. Hobbling software development as a way to deal with that issue hurts a lot of people. The important dynamic of software is one can build on the efforts done before. The patents do more harm than good, creating artificial value and scarcity where there really is none. Real money is made actually producing things that solve problems, and continuing down that road, not doing it once, then locking it up for so many years.
We wouldn't have the level of computing we do today had we the law we do today back then, and that's what your real Slashdotter thinks about. At least that's what we thought about so long ago when this all started.
Finally, the piracy in the US is paid for. Money is being made, and a lot of it is being made. Don't forget that. So the question is how to leverage those opportunities, because that's exactly what they are.
We can continue the discussion, if you like. It's a good conversation here, and one I've not had for a while.