I agree with this. In practice piracy on console is and always was fairly niche.
DVD playback, game catalogue and also the overwhelming success of the PS1 (with which the PS2 was backwards compatible) were much bigger reasons for its success.
Looking back and playing my Dreamcast again, I also believe the lack of dual shoulders (only one L and R) hurt because some games simply couldn’t be easily played with the standard controller (and not everyone is buying the keyboard and mouse)
Let's throw on one more: consumers had lost faith in Sega. The Sega CD, 32X, and Saturn (in the US) were all abandoned by the company (for understandable reasons, but still). Why shell out another $200 for yet another system which was going to be prematurely dropped in a couple of years? Which, of course, was exactly what happened.