When I go to Gamestop, I can't find quality games for the glut of Petz and Babies games. After awhile, I gave up looking and awhile after that, I just sold my DS, outright. I simply do not care about you or your consoles, because you do not seem to, either. You have let third parties choke both your systems with shovelware and I haven't the time to bother digging through it to find the good stuff. Enjoy your expanded market, though. I can see that it's working out quite well for you.
On top of that, your online setup is crap and, well, I have an Ipod. Ipod has proven to be a much better platform for fun, quirky puzzle games than the DS has, due to pricing of the games and all around easier access to them. Why should someone pay 20 bucks for Peggle on the DS, when it can be had for 5 on the Ipod? Yes, you have Mario and I applaud that. Except I 100% completed NSMB 3 years ago. Since then? Nothing. If you'd put forth some effort, I'd even be interested in an actual new Pokemon game. One that isn't the same engine you used for the GBA games that actually looks halfway decent.
In short, I am sure piracy is a part of the problem, but much like the movie and music industry, blaming piracy is a "head in the sand" tactic that allows you to ignore your actual issues. Times have changed and you are not evolving. Piracy was just as rampant when DS was topping the charts, so perhaps you should look at the big picture and stop pretending your consoles don't have some serious shortcomings.