This is where I think the push to digital is going to put them in a harder bind than they realize. They're entering a territory they aren't really accustomed to in the same way Steam/Valve is used to it. Valve only sells licenses for digital PC games, but they also are less aggressive towards piracy and the prices on Steam are reasonable and what digital buyers expect. If anything, Valve lives in a bit of a symbiotic relationship with piracy, since there is still motivation to buy the game on Steam for convenience's sake. And of course, GOG exists as a legal alternative for those looking for more real digital ownership without the hassle of trying to safely pirate, and many PC owners double dip on both services for that reason.
Playstation, Xbox & Nintendo may not be prepared for that environment in the same way and may be over-estimating their ability to deal with the transition smoothly. Sure, the numbers might say "Oh, only 20% of game sales on PS5 are physical!" but what if you effectively lose that 20% or even more and on top of that are trying to make up for it by attracting a new demographic that takes certain practices for granted or who may be much more piracy-savvy than your average console player up to this point?
Between the Big Three, I think Xbox is the most prepared because they've already spent years creating their own self-contained digital environment with a customer base that sorta knows the score.
"Piracy is almost always a service problem and not a pricing problem"
You're right on all fronts. Valve already knows people pirate, and I don't think I have ever heard of them seeking legal action over it. I'm sure they have, I just don't recall it. Being on the PC, Valve knows people are going to weather lack of money or just want to try it out before fully committing to a purchase. And yeah, Valve keeps prices pretty reasonable themselves.... you can't hold that against them when, like the DOA people, they want nearly 500 bucks for their DLCs. That's not on Valve's head.
Xbox is in the same boat more or less, being from an OS producer and intrinsically tied to computers and piracy, as you said... knows the score. They know people will pirate and will find a way to do it, there's never been a question about that. But I will give Microsoft a bit of credit here, they do have damn good console security on their systems, and again, I will give them that.
But nothing is unhackable, and they know it. Someone will always find a way...
When Xbox inevitably turns all digital, they won't be as blindsided by it. Yes, they will feel it a bit, but it won't hurt them in the long run. As much as we would like it to, it'll be a drop in the bucket.
Sony, however, is not as prepared for this. They are and always have been a home console company... not counting the PSP and Vita, which they didn't care about anyway. When they go all digital, and fans become fully fed up with it, the flow of money from the PlayStation brand will start to dwindle, much like a small river that's 90% blocked off. They will have done nothing but harm their brand, losing a massive amount of income and the faith of whatever fans they have left.
Now, I'm not saying this will cause Sony to crash and burn or go bankrupt... like Microsoft, they will feel it, but they won't just pack up, throw their hands in the air, and say "Well, I guess we fucked up!" then go home. They'll continue on, just like every other multi-billion dollar company.... greedy, not learning a damn thing, and moving on to the next way to rip off whoever still buys their slop.