I wanted to add something I forgot. Piracy DOES determine what gets written and released if it appears that pirating of a title is high while sales revenue is low, even if those two things are NOT factually related. I've just completed the formating etc to release my newest book in all ebook formats, including Kindle and Ipad.
It's DAYS of crappy, tedious boring work, and I hate doing it. If I see that legit sales of the title are low, and I see pirating going on, I'll simply not release future titles in e-format. I'm not being sulky here, but I run a business, and I have to spend my time in ways that will a) be enjoyable, and b) pay the bills.
Clearly the big publishers don't work that way, but we are seeing the resurgence of small publishers, such as myself who need to focus effort. It may be that piracy doesn't greatly impact revenue, but it's perceptions that count, and nobody, authors and publishers, and programmers don't like to feel like suckers.
I AM watching what happens to my newest release - it just went into distribution today, so I won't know for months what happens.