Seriously though, besides the obvious downside to this, I would like to discuss a possible upside.
Pirating happens. That’s a fact. Especially when you’re talking unencrypted code that can be modified to remove license checks, etc. It’s essentially unavoidable. So is this a big problem?
I would like to argue that this site is actually a good thing for the community. Why? Critical mass. Pirated add-ons put add-ons in more hands. By having access to add-ons to experiment and develop with without cost, the single biggest obstacle to choosing EE is removed for many users. Fair or not, what this means is more active development using these third-party add-ons.
Why does this matter?
Although I am 100% behind the idea that developers must be fairly compensated for their work—and that add-ons being for sale commercially is largely what has made EE’s third party add-on community superior in quality, reliability, support and updates to uneven mess of WP’s plugin library— the fact is that sheer volume of active development plays a HUGE part in the growth and sustainable, long-term success of any CMS, including EE (and third party devs).
When you look at the relative trending search terms for EE vs other CMSs, the results are not exactly encouraging:
http://www.google.com/insights/search/#q=ExpressionEngine,WordPress,Drupal,&cmpt=q
What pirating add-ons does is increase the amount of dev being done with EE. The flipside is that this dev inevitably comes with support requests, which have not fairly been paid for. There’s a risk devs will be overwhelmed by the freeloaders, and that legitimate (paid) users’ support requests will go unanswered.
I know. It sucks.
But, to remain hopeful: MP3s changed the music industry forever. So has streaming video media. I would say both have changed for the better, to meet the demand of modern media. I take that as evidence that there can be a happy (profitable) ending to this trend.
Pirates have always been the first to skirt around a pay wall if and where they can—but if we look at the typical adaption pattern, after this initial wave of theft, a balance is struck—especially once those devs who pirated to learn now have paying clients they can bill for the license fee.
It seems to me that pirating is an indication of early mainstream success.
Thoughts?