First of all, two words from my side: EXCELLENT POST. I thought, only I am good at putting words on to the screen but, it felt so good that youngsters do think this way and can express themselves too, so smoothly.
You see! its quite simple, no need to take or give reasons for this.
Its all connected to one and only one factor, whether it is piracy, stealing, money earned through shortcuts, or even killing someone, for any reason, legitimate, illegitimate, right wrong, good bad, what so ever, what ever is wrong, is wrong. But, wait a sec, do not forget what our human nature is, we as human are by nature bound to commit wrong or sin. It is innate in humans. Then the question is, what makes us walk on a right path in life! So, it is basically, LAW, yes law is what makes all of us disciplined, and it is the deterrence of the laws that fears us not to steal anything, otherwise, if we steal, according to the Islamic law, our hand will get cut, and we will be put in hell on the day of judgement. Try to understand this way, if we see an expensive car on the road and we want it but cannot afford it then what we can do, we can snatch it or steal it but we don't, why! because police is going to catch us. Similarly, if there are laws to be made and then most importantly, laws to be implemented after coming into existence, then not just piracy but but our country will get rid of a lot of issues.
If laws are to be implemented, if I come to know that if I use pirated version of my OS, I'm going to be in trouble, then automatically, I will start paying for my copy or go for its alternative.
As far as personal guilt is concerned, if something is done on a large scale with convenience by 99 per cent of the people without any restrictions of any sort, then guilt is consoled with this thought that "if everybody is doing it, then it is ok".