After buying FFXIV and being horrifically disappointed I'm pretty sure I won't be buying any game I can't get in a download anymore. Excluding of course console games.
I don't pirate games. I usually play a demo and If I like it I buy it. I have run a crack or something for a few days when I couldn't afford the game, but If that happens I ALWAYS buy it.
A company I used to work with was caught pirating software and the ensuing case shut them down overnight pretty much. With so much that can be at risk by pirating or anything like that it is just not worth it. I still haven't jailbroken my iPad or iPhone, no real need at this point.
I think any company that doesn't have a demo for people to try is begging for problems. I try all the demo's I can get my hands on, however I am NOT willing shell out 50-60$ to try something with no demo. I have a few good reviewer's I follow that have very similar tastes and that helps, but one or two bad eggs at $50-60 apiece is enough to **** off anyone.
As far as optical media goes and why I don't personally use it, I don't even have a CD drive on my machine. Everything is installed via USB drives now.
I've had experience with the "one glitch and you're SOL" issue. I prefer to use Direct2Drive over steam, but I do use both. My MW2 game was basically invalidated by steam expansions and all. I sent an email to D2D and they fixed the issue within 24 hours and gave me a $20 coupon to use at their store. I could not have been happier with their support.
On the flipside, if you're scared of losing digital purchases to a glitch try this:
Create a new email account (gmail, yahoo, aol whatever) Use this email only for receipts.
Any time you buy an online game take an SS of the receipt and email it to your receipt email.
Now you have a full inventory of all of your games with receipts that you can access anywhere. This has NEVER failed me, as far as in game hacking goes I'm very against it.
However, I am all for botting when it comes to ridiculous grinds. After working an 8 or 16 hour day I just don't have the time to play and build characters. I don't feel that because kid X has no life/obligations he should get an instant advantage. I don't bot to level, but I occasionally will run a script to fish or create items that would normally suck hours of my time down a hole for very little. Besides, It's a ton of fun to set your character up to fish all day right before you go fishing all day...