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I know many people who refused to buy the latest version of Quark because of activation - nothing to do with the idea BEHIND activation, they're all for reducing piracy, what they are against are the number of problems WITH the activation process; people being denied activation because of serial number problems, activation problems over the internet, on the road with their laptop and something happens.
Or like in my company, we're working on switching from Quark to InDesign, in part (though not in total) because of their crappy licensing server (not quite the same issue, but a related problem). Quark keeps crashing, forcing the user to "force quit", and when they do, the Quark server doesn't release the license.
I don't like the idea of piracy and I don't like the idea of "activation" (I don't think those ideas are in conflict). But if you MUST force strange licensing on your users, at least make sure it works right.