I agree I think it was a broken business model and a lack of development that were the major factors that did for the Amiga. I dont think piracy helped, it took money away from the market that could have perhaps lasted a little longer if it had had more slack in the system. I remember thinking back in the day that time was running out for the miggy. When we started buying games with PC/IBM screen-shots on the back i thought it was the beginning of the end. and then when a saw games running on friends pc's I was already playing my old miggy games and feeling nostalgic.
I never saw much piracy on the miggy, but i did know it was there. I had already left school when i got my first miggy and as i had no idea how to copy games myself - in my school days it was tape cassettes, copying protected floppies was a no no - i purchased most of the games I played.
the games industry has moved on and game design sensibilities are far more developed than they were back then, but there is a couple of things i miss. I miss the huge amount of titles that used to come out - overheads for games devs were much lower and more devs were open to innovating and trying new stuff. yes there was loads of just 'ok' games and 'rubbish' but there was on the whole far more new IP. Because i had no internet back in the day magazines and window shopping was the only way to find out what was new in the shops - buying a new game was far more exciting, and more of a complete experience of getting a new game, you never new what you would find.
in the short term cracking and playing pirated games may have been bad.
But in the long-time those crackers have probably saved a lot of our games from simply vanishing.