1. Putting no DRM will not cause piracy. Piracy is caused by the want to play a game without paying for it. You cannot implement DRM to stop piracy. Pirates are ahead of the curve and game companies are trying to keep up.
2. DRM will not become an issue until it affects the individuals who have it. The majority of customers are uninformed and simply wish to enjoy their game. Of course, those that read the box and see the DRM don't think much of it until their internet goes out, and a game they paid $60 for to play by themselves, can no longer do this.
3. Paying customers are the ones being targeted in this DRM game. The majority of "pirates" are people who know how to use a torrent and replace a few files described in the readme. If they were truly against pirates (the few who can hack their attempts at forcing consumers through enough loop holes to stop hacks) they would stop targeting the wrong people. These publishing companies are getting large enough they can pressure the right people to get the original torrenter. You stop the release of a pirated copy, you halt the pirates for awhile. Eventually, there will be another, yes, but force out enough and you can scare enough normal people not to upload the game in the first place.
Simple CD checks are one thing, but this forcing of phone home is a little too big brother for me. I won't touch a UbiSoft game from here on out. Say what you want about pricing, but rest assured, even if I got the game for free without the DRM (read as pirated), I wouldn't dare install it to give them another player.
1. By allowing a game to be available in pirated form from day one, no DRM causes piracy. By giving people "on the fence" an option to get the game for free. Die-hard pirates won't buy it anyway but at least they will need to get a crack - hence a good DRM won't give them day one gaming. And people wanting to game and seeing no other option apart from legal (due to impatience, convenience or a sudden change of heart

) will cought the bucks for a legit copy. Add a huge buzz about the game and people will want to play this day 1

No crack available? Ohh well, might as well buy it.
2. If their internet goes out I'm sure they have other things they can do. Not to mention this should be very very rare. Unless you're a spoiled 5 year old that jumps and cries each time he doesn't get his toy or candy, this will be a non issue and the chance of it happening is slim at best for an even lower chance of reoccurring. If your local tower (for cell phones) has problems or you get a "No Service" message for a few minutes, do you scream bloody murder at your provider and swear to never use their services again?
3. Again, this seems to be a non-issue for people who have broadband. When was the last time you had an outage? And even then, how long was it? Surely those happen very very rarely. And Ubisoft will make sure their servers are up 100%e. If you have no power? You can't play anything else anyway. This doesn't install anything extra on your PC (like TAGES, SecuROM etc do). You just need to be online, that's it.
Simple CD checks or phone home each start won't stop anything and are borderline useless. A specially changed .exe is all that's required usually. So this doesn't delay pirated copies at all. You get that day 1 or even pre-release. Now those are useless.
So my take - hard to crack DRM + a lot of buzz = gained sales. People will want to play a game ASAP and no available pirated copy will force them into buying the game. Or not buy it at all - but those are die-hard pirates and nothing will change them (so they're not considered anyway).
EDIT (for AndroidVageta and mindcycle): My take is pirates are "gray" people for the most part. As in not totally rotten cheaters. If you inconvenience them enough (here: with a long wait for a working crack) and they want to play a particular game, they will buy it. This market isn't black (pirates forever) or white (legit users) imo. It's gray (pirates out of convenience - just download and play).