I'm kind of wishing there was more data on piracy on platforms outside of PC stuff. PC game piracy has been discussed to death, and I don't think anything will be resolved until someone decides to make serious, broad, and in-depth research into the subject. I never see discussion on handheld piracy though despite knowing it is quite popular these days. Relevant to my current interests I guess.
No company would fund it because they know it wouldn't support their position.
I can't think of a single game I've pirated that I would have bought if I couldn't have pirated it. If it's good enough to buy, I'll buy it. Hell, some games I've bought twice (KotOR, X-COM, Deus Ex). And some (Just Cause 2, Jade Empire, etc.) I pirate, play, go "Ehhhh," seed to 1.5, and delete forever.
Regarding the handheld example: I have a pirated PSP I bought off a friend of a friend, but I would never have bought a PSP or any games for it without that. I've only played pirated games, but when Capcom FUCKING RELEASES MHF3 I'll have my first legitimate PSP game purchase. Until then, it languishes in its case. I haven't played a game on it since MGS:Peace Walker, I think.
I don't know about other people, but I do game and music pirating basically the same - if I do like something, but not enough to spend money on it instead of on other things (e.g. better games/music, Steam sales, food, rent) I supplement my entertainment sources with piracy. If I have an adequate abundance of money and no great surplus of new things to spend it on, I occasionally (these circumstances are rare, after all) legitimately purchase things I've had pirated to support the creators.