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Huh? At least for music, iTunes prices are pretty fair. About the same as most other stores, though they have fewer sales than say Amazon. And all the music is DRM free. Video is a different matter. So at least for music I see no scheme and nothing wrong with buying from them.
And discounting it's use to people because of Piracy is silly. I've never pirated anything, and never well. I've also bought very few MP3s as I prefer CDs, but I've never illegally downloaded a single song.
I think stealing digital content is the same morally as stealing a physical item with that content on it (i.e. pirate and album you might as well steal the CD). So for me when I buy a device to use digital content, having a big selection and good prices is key. That's why I went with the Kindle. Being in the US the Kindle store had the best selection and prices vs. the other options, and that was important to me since I won't pirate books.
So iTunes can still be a draw to a device--at least for decent human beings who don't just steal all their content.
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