Just had a thought on seeing your point 1): Part of the value some people buy is exclusivity. If others can get it for free, it reduces this aspect of its value.
How does exclusivity add any value to a piece of software? The utility and productivity that I get out of a piece of software is in no way influenced by how anyone else obtained it. Sure, I might be bitter that I didn't also break the law and obtain an illegal free copy of my software, but that's really just sour grapes.
And in business if the value I'm able to produce with software is governed more by my exclusive ownership than my skill with it and other professional skills, then it's probably a good idea to find another line of work.
