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Wii Warm Up: Your thoughts on piracy

We've heard a lot about piracy lately, from the seizure of modchips to GameCube games being sold under the Wii label, but one thing we haven't heard is what you think of the whole deal. Like most gamers, we're pretty firmly against pirated games, but modchips tend to send things into a gray area for a lot of the community. Should some modding be okay? Is there any way to draw the line and prevent piracy while allowing some mods? Do you even think there should be?