You are absolutely correct. This is just a B.S. excuse to cover up the fact that people are not interested in buying their products. I've noticed that it's mostly the same few crappy publishers that spew this nonsense over & over again. Yes Piracy is an issue but good games sell well despite piracy. Valve is not crying about TF2 being pirated neither are the WoW developers publishers etc.
Ex 1: CoD4 devs. did not implement certain basic functions to reduce piracy. The game is very good & sales where very good despite the piracy.
Ex 2: GEARS PC, the game was not very good the sales where bad same with Crysis.
Bottom line, people will buy good games & bad games get pirated to hell & back then deleted. Demos might help reduce the piracry but not by much. Like a guy said the other day on the bus, he considers most game, movies & Music albums as disposable entertainment because it's so bad that he downloads it when he's really bored looks or listens for a few hours & deletes.
I would not put my career in jeopardy by acting this way but I've heard this from multiple sources. I can't even remember the last time I went to the movies or bought a music CD... if I'm desperate, I rent a few movies or listen to old tunes on youtube.