Piracy was more of an issue with the Dreamcast than it ever was on the Playstation.
For a start, to pirate a game for the playstation you needed to open the console, buy a modchip, solder the thing in. And when the PS started, CD writers cost around £1000.
With the Dreamcast all you needed was a cd writer. No modchip no soldering, no nothing. Just download a game, burn it, play it. And cd writers cost less than £100