I don't pirate games, though I do download emulators and roms of old stuff from the 70's/80's/early 90's for use on my open source handheld.
I think video game rental services are great, though I don't use them myself. I like the concept. You have just about any game to choose from, and don't need to download it. Just pay a monthly fee.
I never ever pirate movies, because I love seeing stuff in the theater. If I like it enough to pirate it, I should just be going to see it.
However, I'll admit to downloading TV shows that I've missed or shows that have a long wait between tv and DVD. More often than not I end up buying the shows in complete series sets. I just hate the way modern TV is handled. Cable costs way too much, and offers up way too little. Stuff on HBO and Showtime may be great, but it's too expensive for the channels. Other options? Buy via iTunes or Zune, but then you've got these files that you've paid for but only watched once.
Ideally, there should be a system where you subscribe to the season and have the ability to watch each new episode on release and have the ability to watch it until the next week's show is released. You can go by the episode, in the chance that you dislike the show and want to cancel. Or you pay for a season at a lower cost. So you save money in the long run, but are roped in for the full season. Also, this package should include a rebate for the eventual DVD/blu-ray release. Like a $5 coupon. If this were a system, I'd gladly pay for a full season of, say, Californication or Curb Your Entusiasm if it meant I'd get each show for temporary viewing in HD, and could save a bit on the physical release down the road.
iTunes season pass is sort of like this, but it involves purchasing a full season in digital form, not simply renting them. Plus, these files are very restrictive. I'd have to go through a lot of illegal hoops to convert them so I could stream them from iTunes to my XBOX. So you pay for files that take up harddrive space and cannot be used where you really want to use them.