Little known fact: Old Xbox supported both 720P and 1080i. Of course there was only like one game in each resolution.
As far as piracy, sure, it was always around, but with the internet it's a hell of a lot bigger problem. By the same token, piracy is a problem for consoles also, but only a small percentage of them are modded, thus console piracy is still a manageable problem. And may be there were "big" games in 2007 (that's 2 years after 360 came out), but they're all mainstream crap, only after 3 years or so is there enough diversity that I can actually find stuff I like.