Piracy didn't KILL the DC.    A lot of people  used the poor security of the  DC  to  play copies of their NES/SNES/GB/Genesis and other old console  ROMs on their televisions with a control pad.  Far more  did that than    use it to  get free copies of Sonic Adventure or something like that (at least, judging from what  I hear from  others, and  their  own  uses for it).   People have begun to use the GC for this purpose.   A #planetchatter, whom I shall not name,   owns an N64, but his little sister  is always  hogging it.   Therefore, he  uses the Cube's ripped N64 emulator (from the OoT/MQ bonus disk) to  play  ROMs of all his  N64 games on his GC (he only plays ROMS of legitimate N64 games he owns  on  his Cube)   Hacking a system to do something like THIS is fine.   
Also,  it wasn't Ps2 hype that really killed the DC, either.  More than piracy, more than Ps2 hype:  the  thing that killed the DC was  Sega's past console failures.  They had taken such huge financial blows from the multiple past failures (ex: Sega Saturn, Sega CD, Game gear), that they simply didn't have the money to continue  to support the DC financially.