It seems to me that you're doing all the right things with your books in that they are easy to find (on Amazon and smashwords), convenient to get, reasonably priced, and DRM free. People who won't pay in that scenario are, it seems to me, unlikely to represent a lost sale - they just aren't going to pay. So, I'm not sure to what extent it really does lose you sales.
I wouldn't argue that piracy is a good thing for independent authors, but it is perhaps an inevitable thing.
One thought that occurs to me: many smashwords titles have a blurb at the beginning which says to buy your own copy etc. Why not put a page in at the end which says "if you enjoyed this, why not try my other titles at <url>" and perhaps "if you obtained this copy without paying, please donate at <url>". Placed at the end of the book, this might be more persuasive, as people have just had the benefit, rather than being about to enjoy it.
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