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I believe that if authors were more concerned with the actual money they made from their writing than in the "potential" money they lost through piracy, and therefore refused to use DRM and did use multi-formats, that they would end up making more money. Now with a DRMed book they so restrict their market that they lose potential buyers because those buyers don't buy.
That's one of the main premises of Baen and why they make money the way they do business. The, "Don't treat your customers like thieves." argument is IMHO rather inconsequential in comparison with the increase in "actual" money gained through sells to a much larger market.
Bottom line is; authors, writers, publishers, etc. do not lose actual money due to piracy. They only lose potential money, i.e. money that they never really had and you cannot lose that which you don't have.
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