The piracy scene on X360 seems really bad......I just did a search for RE 5 on mininova and got more than 20 torrents for the X360 version of the game. I wonder what will happen eventually, coz we are already seeing devs shifting away from the PC due to piracy ! and now X360 is getting a dose of piracy too.
Piracy is something that will always be there, people will always find a way to hack a machine to little pieces and find a way to pirate games. Xbox360 isn't the only machine that has piracy, and it definately won't be the last.
As for RE5, I guess I'll give it a go, my girlfriend is so scared of these games so it should be a blast to play co-op with her.