I feel the need to clarify a few of these points as your missing the point behind the reasoning:
A) Nothing is free. Absolutely nothing. A1) reproduction of said digital copy not only takes some means of transmitting that copy, in this case their own network. Servers, staff to maintain,
power, all come to mind when recreating. A great example of how this can be exponential is the WiiU where you would download games directly from Nintendo and then apply tickets to quite literally pirate from them.
Side note of value, our viewing this thread takes the server to host it, all of which incurs cost that
someone has to pay for, I often feel facts like this are easily over looked.
B) In the eyes of the law piracy is piracy, and while your statement does apply to some, it doesn't apply to all. Piracy that allows purchase at a later time, can also lead to lost sales as they could be puchased second hand or later at a discounted rate.
This does equal loss as far as accounting goes
C) This case isn't just related to Nintendo, it's from the early days of TX which go back to Xbox (2004 era). As stated in a post from the justice department
in this very thread The correlation most people are mistakenly making is that this is just Nintendo vs Bowser.
D) Used games still contain a sale, and while they do dampen sales, piracy is strictly loss. In the business world that will never equal the same.
E) The only reason to purchase and buy this over the free alternatives
is piracy. This fact alone creates loss as now there is a transfer of funds that *potentially* would have gone to sales for those effected. This part is huge.
F) I hate to say this, but Gary
DID (almost) EVERYTHING. With out him (or someone doing his job) TX would never have been a name people would say anything more than "what?" too. His work was critical, without advertising, and awareness TX wouldn't have captured the audience it has. Look at how many SX threads there are, credit where it's due. Gary is responsible for the awareness.
Marketing is everything, why do you think the internet is full of ads?
On a more personal note of things, I didn't care for him, his salesman like shilling of his views and products he "seemingly" had no association with (this is also long before this era) add to this the fact that Gateway was again part of the brand with shit like fucking brick code...
I may not care for him, but he did an incredible job at what he did do. When you sit down and plot it all out like someone in the justice department clearly has, this all falls inline with what one would expect. He became a global name in piracy, not an easy feat...
I left the final part of your post in as I believe you actually don't know just how bad a world with out a justice system could be. If you want an idea of what that looks like, take a look back to World War II. What happened then alone is why people must be held accountable.