His post uses a freemium market of gamers who are predominantly either too young/poor for a credit card or too casual to attach to a game to draw his conclusions against buying realized products targeted at core audiences (and I say this because the biggest torrents are all for core-targeted games).

XBLA had an 18% conversion rate in 2007, and it's hard to say with a straight face that it'd go down. 2010 saw Ken Lobb (MGS) citing 20% to 40% rates in interviews for in-house games. These aren't perfect proxies for PC piracy but even if it's halved when you jump from console to PC, the 1% value just doesn't make any sense.