I'd say piracy boosts hardware sales. The Sony example is fine, there are zillions of Playstations out there because teh machine is piratable as hell. And over here, the moment teh Dreamcast started to get pirated, the moment that sales boosted like shite. Everybody had a Dreamcast.
Personally I dont think it's ok, and I also don't think teh price for games is ok either. So I stay in teh grey zone