My thoughts on the subject are complex.
When it comes to intellectual property theft and such I am more concerned about things like major patent violations over drugs, electronics, and even clothing. Cases where billions of dollars have been spent in research and development only to see a country like China analyze the product and produce a knock off for half the price and kill the market for the people who invented it. This kind of thing is a touchy issue and all over the world court, as well as one of the major issues I can see contributing to a world war.
This leads to all kinds of arguements, even a few on these forums, about the irrelevency of such laws, and how people have a "right" to their knock off viagra or whatever and to not pay Pfizer's prices.
On the other hand when you see something like an R4 cart, a RoM, or whatever and companies cry, you actually see arrests and people treat it like some big deal. To me it seems trivial, and while they ARE right, I can't believe you actually see an arrest over something this comparitively trivial. It's like ignoring a bunch of crack dealers to go after a jaywalker.
The biggest problem I have with the issue itself is that to some extent it involves property rights. See, what a lot of it comes down to is companies wanting to get people to pay continuously for something they already own. As well as to in many cases continue to hold copyrights they do not want to pay to maintain.
Things like R4 carts are used for doing things like playing ROMS. Companies care very little if you had bought the game in question, they think you should have to buy it again for each new platform even if they do nothing to improve it's performance or whatever. To me that's a touchy subject. As are issues like "Abandonware" where a company no longer maintains production or even the rights to a product yet gets all uppity if someone decides to put the game up on a site like "Home Of The Underdogs" or "Abandonia".
In general it seems the major complaint about things like this is that in theory you could pirate a current gen game, and that should make them illegal, despite numerous legal uses. But in the end they are no worse than floppy disks, VHS tapes, or other "last gen" media. I think the development of things like DVDS and other "read only" media has given the industry a power trip and an inherant resentment of any kind of potential power in the hands of consumers.
Generally speaking I only think there should be a problem is if someone is caught accepting money for a current gen/currently retailed game on an R4. That's wrong. But even the practice of copying a current game onto an R4 or even owning a game on nothing else, is absolutly fine. See one of the things *I* personally like about being able to copy media is the abillity to create backup copies in case something happens to your originals. Having suffered home floods, thefts, and other things over the years, I admit it makes me a bit nervous to dish out $40-$60 for a game and not have any way to protect it or back it up. I do not consider digital downloads a fair compromise (unless the games are very cheap that way) because your at the mercy of the service. As someone who started with the C-64 I'm one of those guys who is most comfortable knowing I have a backup copy somewhere in storage if the worst happens.
Oh sure there is plenty of potential for abuse there, and it doubtlessly IS abused, but it's not like the gaming industry is full of angels. After all a big part of THEIR motive isn't just the piracy, but also wanting as much power as possible in their hands to re-sell you the same thing as many times as they can if they can get away with it. There really are no good guys.
At any rate the bottom line though in all of this, is that for all of the arguements back and forth, I think all the energy being put into chasing around "pirates" would be better spent in trying to shut down knock off shops (mostly Asian), through more serious (and vehemently enforced) embargos (preventing trade from leave their borders and so on) if nothing else.