I'm sure it breaks the heart... if even 1/10th of those people bought the game it could have made a difference, and whether you believe that or not you can't deny the emotional power of having a failure game ruin your company and seeing tons of people stealing the game online. I'm sure if you created something and had that happen you would equally burned.
People have got to want to buy the game. There needs to be a reason to spend the money. This is something that devs/pubs seem to ignore all too often. I think the amount of WoW like games that come out on the MMO market and fail miserably while supposedly suffering zero piracy is interesting to say the least. Just because you make a game that does everything right on paper, people just may not want to pay for it.
Being in business is about offering a service people WANT to pay for, not a service that people should pay for and don't. If people aren't paying you for your services you need to offer better services. You can try and offer the same services with more restrictions but it doesn't seem wise to expect people to suddenly want to pay for your services when you make them more restricted...
I think I will write a letter regarding this as someone mentioned earlir. For this game in particular I think they are overcharging for this game, especially on the PC, and the DRM limitations are a slap in the face to anyone who spends $50 on this software.
99gamers.com-Going down in flames after discounting their currency! Kickstarter "Game Developer"!