First, as has been pointed out, it is not theft. It is copy right violation.
The market analysis of something that has no intrinsic protection and no intrinsic cost, and whose entire value is determined by a monopoly established by copyright is very complicated. For instance, normally, if someone is unable to get his price for a good, he drops his price or reduces the quantity of production. In this instance they appeal to the government.
It is both.
That's like saying stealing a car isn't auto theft, it's violation of the statute forbidding it. Absolutely bizarre what lengths people will go to to justify their personal sins.