If people don't have expendable income for things like games, the answer is simple: Don't buy them. Not being able to afford a game is not an excuse to steal it.
While I completely agree with you, I'd be a hypocrite if I said that I'd even be here on GAF if I didn't pirate tons of games while growing up. I can definitely say that I'd never get into gaming if not for piracy. Nothing would convince me to buy an expensive gaming platform and expensive software when I started making my own money if I didn't already have many fond memories from playing pirate games as a kid. Piracy absolutely is the only way many kids, especially in third world countries, are introduced to gaming, and later, when they have disposable income, those kids can become legit consumers.
Actually, before the PS3, I can't remember a single store in my entire city that sold original games. There was only piracy. We didn't even have this sense of "buying/downloading illegal games", it was just "buying/downloading games", because it was either that or nothing.
So there is definitely some merit to trying to convert pirates into customers, even if it is absolutely true that many of them (probably the majority, tbh) just don't want to pay for games.
Personally, I don't think The Witness' price is unfair, it seems to be worth the price Blow's asking, but it just doesn't really interest me. But as someone who wouldn't buy the game anyway, that just means I don't care about the game, and I wouldn't even consider pirating it, why would I pirate a game I have no intention of playing? So there's also a lot of merit to people saying that it's not true that pirates would never have any intention of buying the game in the first place. I'm not convinced people would just find other hobbies they can pirate if all of a sudden it was no longer possible to pirate games.
I guess I didn't make a lot of sense, just a bunch of rambling, but I thought I should share my view on it. As it usually is with most divisive issues, people often choose an extreme when the truth is somewhere in the middle.