The PS1 was so simple to mod, that all you had to do was put a spring under the lid and run a boot disc and you could play any CD-R you wanted. The PS2 was also similarly easy.
Piracy doesn't hurt gaming like it does other industries.
Different times. Information dissemination then and now are not even wildly the same.
And these days, ppl are a lot more tech savvy. Even something like custom roms on android phones is common throughout the world and even in developing countries.
Im not saying you are wrong about the damage piracy can do (or not I suppose), but I dont think the examples from the past are quite adequate.