Well, why would they ditch for piracy? Netflix was smart about the whole thing: adding an authorized household (not user, entire household) is cheaper than creating a new subscription. The people subscribing to Netflix aren't fundamentally opposed to paying for streaming, they were opposed to an unfair change in the business model. Netflix countered with a seemingly fair change in the business model that now eliminates the hassles that come with password sharing and could make the marginal increase in cost per household fairly small. It was overall a pretty smart business decision.

There are many many problems with Netflix, including their growth-based business model, the lack of insight into their finances, and the way they're slowly enshittifying the film industry. They're a major reason for the WGA and SAG-AFTRA strikes. However, this change wasn't stupid and people weren't stupid for going along with it. I don't see how it would lead to an overall increase in piracy, that's being driven by the many new streaming services forcing costs on consumers. But consumers won't blame Netflix for that because, frankly, that's not Netflix's fault.