I totally agree. That's a big part of the reason why I think piracy isn't half the problem the industry makes it out to be.
There are quite a few people who would pay if they had to but they don't because they can download a ripped DVD and watch that. That's money lost.
In general, I agree, though - people who pirate movies are not people I would market towards anyway. Sex and the City (sadly) and The Dark Knight proved you can still make money just at the box office.