Kudzu (Chad Z.) has some really thoughtful things to say regarding software and piracy. He says what I have felt for a long time, but does it much better than I could.
As software developers, piracy is something that affects us all. If you are a software developer that works for a big company, you do not see it directly but you still have an interest in who is using your company's software. If you are in small company or a developer who sells software, piracy hits a bit closer to home.
However the conventional wisdom, which often equates to the "knee jerk" reaction, is not the proper one.