3Ball, I've known people like that myself, and I know what you're talking about. Consoles have been hit by piracy for a very long time, and I find it very frustrating when I see comments at times from people (including some developers) where they act like piracy is a PC problem. The specific guy I knew had been pirating everything under the sun for every console out there. Xbox, PS2, Dreamcast, DS, PSP, Wii, 360, etc.
Granted, not everyone is going to feel comfortable chipping a console or flashing firmware on their 360, but there are probably more people now than ever that are selling modding services through public sites like Craigslist, or even people selling pre-modified consoles on Ebay. Modding services and pre-modded consoles make piracy much more available to those who don't understand the process, or doing feel comfortable doing it themselves.
I've seen arguments that people who take advantage of a modding service or pre-modified console then have to figure out where to download the games and how to burn them, but there are even people who sell pre-burned games as well on public sites. It takes all of the brainwork out of it.