You are half right in my opinion. They have to acknowledge the freeware market to some degree.Again, the false narrative is that someone pirates as an alternative to buying. That is a lie flat out. I am telling you from my own experience that it's not true. Pirating is more of a cultural thing moreso than a monetary thing. The company may be suffering but that doesn't mean it's because of prating. You could never know;
1) How many people are pirating.
2) Know how many of those people chose to pirated as an alternative to buying it.
IT'S A FALSE NARRATIVE!
Example. Reason use to be neck and neck with FL back in the day. but since they locked Reason 6 down, they are far behind FL. Can't blame that on piracy.
On the flip, Reaper was free for years and has gained market share. I always read good things about them.
But were you are wrong is companies have to flip non-payers to payers. There's no way around that. And that's what puts FL in a dangerous spot, they have a user base of dead beat users.