What we were really worried about is beginning to happen:
http://www.salon.com/tech/feature/2002/09/26/piracy_unlimited/
Going "soft" on so-called piracy is now a part of MS's strategy, at least in China. (India next?)
They have realised that "allowing" piracy to happen is an efficient way to fight free software. (Not to mention giving away free (zero-cost) licenses to entire school systems across states and countries)
Forgive me for this "I told you so" attitude, but please see
http://forum.gnu.org.in/1016695648/index_html
where this strategy was predicted to stress why Cost should not be an Issue in the advocacy of free software.