Money doesn't matter to Linux in general. People developing for it don't really care about pirated software on other platforms. It does matter, however, to computer users in general. If pirating was totally elimenated tomarrow, I am sure a lot of people would switch to Linux, where they can still get virtually everthing for free. That said, stopping all piracy is imposssible, and forced registration (and re-registration, if you change a moderate amount of hardware), will probably make Linux grow more as well.
Microsoft will eliminate pirated software. We will begin to see this plan come to fruitation very soon because all the groundwork is set. This will be a big blow to Linux and a boon to Microsoft and its relationship with corporations seeking copyright security