I guess you're talking about the Tekken 6 debate. There's a really fundamental difference in morality in regards to that between the west and the east. And in fact, this forum is probably not a good audience to discuss it with, as we are overwhelmingly in favor of piracy.
At least in the industry of H-games, the west has to jump through many hurdles just to legitimately purchase games from Japan. I imagine DLSite is one of the easiest avenues for a Japanese developer to sell their game, but they force us to go through proxy vendors to buy their points in order to get games. Steam has been making some good progress in offering a good alternative, but their policy on h-content is a little more strict.
The unfortunate reality is that even if you kept it exclusively in the Japanese market, somebody will find a way to pirate it anyway. If I remember correctly, a pretty recent example is when Elzee, the developer of Tunnel Escape, got fed up with the piracy and started doing some anti-western practices, which only motivated people to spread the game even more. On the other hand, there's been plenty of Japanese developers who released quality products to the west and made quite a lot of sales, despite the piracy.
It's easy to say to continue to try to sell in the west because people will support good developers, but honestly, it just makes more sense to me to open the doors regardless; I think making an extra 200 sales while being pirated 1000 times is still better than making no sales and being pirated 1200 times.