Fact #1. Most people crack copy protections just for fun and pride, not to make money. (I do.
) Whatever paysite owners, Chinese fake CD/DVD manufacturers or everyday warez users do with cracks is another story...
Fact #2. Today, it is very difficult to publish (even finish!) a game without a publisher. Developing a game costs a lot of time and money, and the publisher loans to the developer during this time period. In change, the developer gets like 2-5% percent of the profit (yeah, you read that right; I read this on this forum and got confirmed by a friend of mine, too!), the rest goes to the publisher and the vendor. A few developers do get their stuff publisher in online downloadable form (Live for Speed; games released via Steam), though, to get rid of the money-hungry publishers and vendors...!
As for fact #2, if you look closely, this is the same with music, as well: it is music publishers that get irrationally rich, not the actual artists that make the music. It is not only game business but the whole economy that is majorly f*cked up, because of only a few greedy millionaires and billionaires...
(Do I sound apocalyptic in such posts of mine?!
)