Regarding a drastic drop in price--the cost for all materials for a retail PC game is roughly $2. Currently, the cost to digitally deliver that same size game is roughly 10 cents per gig at best or roughly 20 cents. Your justification just does not hold water regarding a drastic change in costs as most of the costs are not the goods themselves.
As far as entitlement--honestly, just want to see new and exciting PC games that do well in the market so that publishers keep investing in them and developers can afford to make them and profit by them.
And theft is theft even if you feel better about stealing a 'digital' version versus a chunk of metal ie. a car and it does not matter if you are stealing a BMW or a piece of junk like a Lada. Millions of dollars are spent on the development of that car and in fact, that is the biggest part of the expense of creating new cars (not the manufacturing). Same is true with video/PC games. Supply is changing (being driven down) but demand is arguably not but is being more and more filled by stealing (and shifting to console as mentioned already).
For movies, as stated previously, they already have a exclusive and captive channel with the box office and then they have established deals with movie studios on buying rental DVDs including profit sharing beyond the bulk sale of the actual movie although that is changing somewhat over the past number of years. But movie studios (publishers) can afford to break even with box office and profit from DVD sales as an almost worst case scenario. They are not affected by 'used' movies at this stage. They have your money even if it is a crappy movie. As well, their hardware is one format most of the time meaning ubiquitous hardware ie. a standard--not a fragmented market like the current console market. Yes, innovation would possibly be affected but 3DO had the right idea even if the wrong execution. We could then afford to sell games for $20 or less and sell to a massively bigger market. Making games for multiple platforms is expensive and wasteful. But now we are getting pretty off topic
But basically, if we did have a common platform (and some would argue that is what a PC could be), and prices were driven down to more mass market pricing such as $20 across the board, would piracy still continue at the same rate? I believe based on the attitude above which I believe to be prevalent that the answer is yes, it would. People would still steal at the same rate even when the argument about protecting themselves against crappy games wasting their $50 is drastically reduced or even eliminated. People just don't see the harm in it but don't realize that they are participating in harming families nationwide through their actions. It is a shame, the PC has the opportunity to be truly mass market and be the one platform that no one company owns especially as hardware power and prices continue to be inversely related. The ones that are going to profit are the companies like Apple, or Steam or others that have the most stringent DRM as part of their channel delivery and we did it to ourselves.