Piracy is just a really messy issue. It's clearly not stealing, because you aren't taking anything from anyone, but it isn't accepted behavior either. It's much like buying a kit car instead of the real thing. The cost of yours is nil compared to the real thing, so the practice is frowned upon by those with the money for a "real" classic car, but it's the same (or better) experience for you regardless, and you aren't hurting anyone by doing it.
Piracy really isn't a problem in and of itself. If the software development process worked, piracy wouldn't happen. But the realities of capitalism are incompatible with the realities of software. In theory, software should clearly be distributed for free, as the cost for distribution is zero. The problem lies in the fact that there IS a cost in development. There's no reasonable way to handle this. Either you tax everyone so that developers are paid, but some people end up paying for things they won't use, or you try to sell something that costs nothing to produce. The problem with the first option is that it makes some people upset. The problem with the second option is that it will inevitably lead to piracy. If we tried to sell passes to the city streets, we'd get a lot of "piracy" there as well, for the same reason people pirate games. If development is expensive while access costs nothing, the only way to prevent people from free-riding is to enforce some sort of tax. We can't do this with software, unfortunately, because it's a global product and countries don't agree on anything.
Worst of all, the gaming industry loses. When you are paid before your product is released, there's little incentive for devs to make a good product. When you are only paid after release, there's little incentive for publishers to allow enough time to finish something they could sell unfinished. And of course taking any sort of risk with game design is completely off-limits, as a company can't recover from a loss because software is only profitable once it's done.
It's too bad, really. But people really need to realize that piracy isn't a problem, it's a symptom. People buy kit cars because the real thing is significantly more expensive than the parts and labor that produced it. Software pirates are only doing the same. It's not great, but it's certainly not the worst thing they could be doing.
And I personally thought Crysis 1 was great and Crysis 2 was awful, for what it matters.