I know this sounds like the start of a bad joke, but this seems to be a fairly simple principle. When the USSR made it nearly impossible to get normal goods that the public wanted, an underground sprang up to fill the need. This is simple supply and demand economics. To generalize, making things overly expensive and tied to one internet connected device is only going to encourage a larger underground market.
People, on the whole, want to do the right thing, but you should not deprive them of their right to do whatever they want with things they have legally bought, or they will circumvent it. Humans adapt, learn, and defeat stupid things like copy protection and vendor-lock in all the time. If they really want to decrease piracy, then they should stop price gouging, stop overly restrictive DRM, allow better "try before you buy" methods, and truly embrace college communities via viral marketing techniques rather than call them criminals.
But hey, you already knew this. At this point, we're just beating a dead horse with this argument.