True enough, although I have no preference either way. I'd think the first scenario is more likely to occur for the average person though.

And although it's a simple task to redownload games through steam if you need to there is also the option of backing up/burning discs, although then you would need to crack them.
Which leads me to my next point: Pirate first, ask questions later. And buy if you like it and support the developers.

It's an apples and oranges argument really, just a matter of preference as has already been stated.