Well you know personally, its rather easy to pirate on console, just need to get a hacked console(which is available at retail these days (no need to do anything yourlself). All people need to do is download torrent burn DVD.
With PC you actually need to wait for a working crack, then properly install the same crack.
Recent games released i noticed Dead space 2 on torrent on consoles way before PC version. Hell even after PC version was there a crack wasnt available for weeks.
So i would say its alot easiler pirating on console then on PC. The only hickup with console is getting the system modded initially thats it.
You can upgrade if you like, however that is your choice. 90% games being released are easily playable on maxed out even on 3-4yr old hardware. I dont think this will change until next consoles are released.
Previously before AMD and Nvidia supported consoles, games used to progress which ment PC gamers needed to upgrade every 2 years to be able to play the latest games in decent resolutions AA etc. However things are different today, Games are now made with 5yr old hardware in mind which means PC gamers dont really need an upgrade to play those games at higher res (unless the games are very badly optimized).
This just means people who previously bought hardware at 2 yr intervals may as well buy hardware at 5yr interval. Hence to get a small share of chips sold to console, Nvidia and AMD slowed down their primary market. PS3 and Xbox 360 combined sold 80million units till date, thats not alot of chips when you divide that between nvidia and AMD over the past 4 years. It probably prevented more gamers to stop upgrades on the PC front, since MOST games dont really need better hardware anymore.