There's no quality loss when you're cheaping out and downloading movies or games, plus it's easy. You can't say the same when cheaping out on hardware.
I used to pirate PC games when I was a teen, but these days I buy them on Steam. The convenience and low prices (especially during a sale) outweigh the alternative. These days there's no reason to pay the full $60 for a PC game. When they slowly got rid of the boxed games with actual instruction manuals, but kept the prices the same, that's when I gave up on buying physical copies. You can't really argue that a download key should cost the same as a boxed game sitting on a retail shelf, hence why I wait for Steam sales or the prices to come down.
One of the reasons why people cheap out on movies and games is simply the convenience factor. I've read time and time again about how DRM in games has caused problems for paying customers, while the pirates have absolutely no issues. See the latest Assassin's Creed game. Yeah, if it weren't for pirates we wouldn't "need" DRM... but software pirates have been around forever. I remember my brother having a couple of cases of 3.5" floppy disks for his Commodore Amiga or 64, all games copied from his friends. Piracy isn't going away, but the industry largely refuses to adapt in a way that benefits paying customers.
For movies, at some point you get sick of buying the same thing over and over again. If you like to have a large collection, are you going to really keep shelling out the money for the same movie for each new format? Bought a VHS of Terminator 2, then the DVD when it came out, then the Blu-Ray when it came out, then the... Rinse and repeat for most of your collection.
The honest cost of software will far exceed your hardware costs.
I can relate to waiting for a new game to come down in price a bit. There is nothing wrong with that. I do so often myself.
But some cd key resellers have such low prices that i wonder if either steam is robbing their steam customers or the reseller need to laundry money.
I do agree i find it strange that games get more and more expensive. Then again, for the artistic part of the game like the graphics it is really not that easy to make automated software.
It is waiting for software that automates as much as possible through procedural generation of textures for trees and houses, roads.
Old games with DRM issues, i can understand that people would go for a pirate copy if they bought the game before but it no longer works because for example the drm program is not functioning properly or crashing because of a newer OS.
Then again, some old games are drm free available for a low price. I hope that trend continues for all old games.
When it comes to movies and DRM, i agree that the studio's have done their best to annoy paying customers as much as possible.
I still buy dvd once in a while. I am happy with it. But there will be a time that dvd players are non existant.
For that time comes i will have converted all my dvd collection to files on a proper mass storage.
edit:
It is just when i mention buying software, people look at me like i am bananas. At the same time they brag they just bought real expensive computerhardware.