It's funny- I have had a few films in "shaky cinema" format- usually films that I REALLY wanted to see, then saw a couple of times in the theatre. I just HAD to see the films a few more times than I could afford... As soon as the "real" version came out on DVD, I made coasters out of my "bootleg" copies and bought the proper, released version of the original to add to my collection. Most folks I know are the same way.
The "lost" money is probably 95% BS. I can't imagine what the industry can come up with next to drive even more folks away from theatres in general....
Wonder where Snowles is, this is right up his alley
EDIT DurkaDurka- MOST definitely- almost every "illegal" film I've ever had that was even close to watchable was in fact a screening/ test or review copy, NOT a cam version- seriously, if a postage stamp sized, LOUSY audio-quality, pixellated copy of the film is "good enough" then the film must have SUCKED in the first place