piracy pushes up the cost of the pirated software
its obviously not true that the entire software empire is funded by imbeciles too stupid to pirate software
people are willing to pay for stuff, its just that payment is not an option,
mostly because of factors like no internet option all the time, can't really imagine not being connected all the time when so many apps are web based
friend wanted to buy an Android app. for some reason, this particular one was not cheaper in the droid store when compared to the iOS store (Orbital). He was still ok with the pricing, but before he could pay, another friend downloaded and gave it to him for free.
now,friend of mine has a Macbook, and got a few games on some recent sales memorial day and because we may, picked up asphalt, world of goo and psychonauts (one of these is a mobile title btw). now a bunch of us played through the games, and were on the lookout for new ones, when people who didnt own the macbook offered their credit cards so my friend could buy more games - just so all of us could play through those ones as well.
so, when piracy is not an option (a) things are awesome cheap!! - ppl will buy apps for others, for devices they dont yet own, for no other reason than its a good game on sale and (b) people have absolutely no hang-ups about paying for it