Instead you must add value and convenience to the legitimate version,
Like, working properly?
while reducing the value and convenience of the pirated version.
Like, not working properly?
I say this method of 'DRM' achieves boths goals exactly as stated as opposed to other forms of DRM. With this approach, the thieves can't steal it and the legal user never knows the difference because it never effects them. An elegant and effective solution.
The problem with something like this is that you won't get those conversions from pirate to buyer (however rare or common they are.) Worse, you'll have really bad word of mouth and claims of bugginess dissuading real buyers as they talk on messageboards to people they don't realize are pirates.
Right, and so the distrust should be placed with the subjective comments and 'bug claims'. And that distrust is created and fostered by the pirates. So they really do hurt the industry and advancement of our games in several different ways.
But to say that people who download cracked software spread trojans and never buy software is pure ignorance.
Who said they -never- buy software? Can you quote where that was stated?
And it is a fact that illegal software is a primary source of trojans, malware, and viruses. Including stuff your anti-virus software can't pick up, such as a backdoor being opened on your system so it can be used later at a hacker's discretion to further spread malware and viruses. Not only is the software a risk, but even the websites that carry it can infect you by visiting the sites, even without downloading anything! To deny the problem is to just deny reality and you're inviting the problem onto your system when you participate and risk spreading infections to others by doing so.