Actually he's right about it being piracy as long as they haven't given up the rights to the game.
But noone really cares. People care about as much about it being piracy as the guys with the copyright care about supporting the games. And when that support want drops to "Not at all" people feel that what they're doing is wrong at a "not at all" level too.
They made a reference to Disney and they're somewhat right. There's just the big difference that your VCR will still play the tapes released again. They said it would damage profits if they decided to re-release the games. Well if they were going to re-release the games wouldn't they have to at least work on better compatibility? Maybe better graphics now that they can release it on a CD? Extra stuff? I doubt anyone but the true lovers of the game (who might have found it to be a great game because they downloaded it in the first place) would buy a game at full retail price which hasn't got any enhancements at all.