Multi-billion dollar movie studios are much different than a small company releasing an Android App. They can handle the loss and make it up with licensing deals. The small company will go out of business in an already ridiculously difficult market.

It only pushes out the small companies and makes way for an app store environment where only large companies can survive. The exact same thing happened with the music industry over the past decade (filesharing was supposed to help the indy artist..or so many, like you, claimed)