Thanks for making the tread Ghost.
In my opinion, piracy WOULD be more economically viable *IF* pirates would ransom more and actually be trustworthy to the point where they *DID* let you go, hell, might even escort you to the nearest high-sec gate. The reason why the biggest income for pirates (ransoms) don't work is due to years of "thank you, now you die anyway, trololololol". Shooting the ransomed opponent even after he/she paid you simply enforce to everyone that ransoming leads to only one thing - losing more isk than the ship, due to pirate being greedy and dishonorable. Ever every 100 pirates that claim to honor ransoms maybe 10 actually do, and 1000 more don't even care to mention it. The odds that you will get your ship out after paying is way to low to be viable.
If these odds were somehow made more viable people (assuming they had the isk) would be more willing to pay the ransoms when asked, and pirates might actually have a 'piratey' income source. IF it was more easy to get your ransomed isk when asked for, more people would do it, and if every pirate honored it, low-sec would mean, to the outsiders, as "that place where if you get cough you will have to pay up to get home" as opposed to "that place you go to get hunted down and killed no matter what you do". Apart from FW, low-sec is far to much risk vs far to little reward, making few targets and many, many pireates in their many home-systems roaming about. These days it's mostly militas vs militias vs pirates, screw the ransoms.
Finally, I'd like to say that in the older days of piracy (Caribbean etc) it was pirates praying on traders while trying to avoid the navy and/or patrols by 'the police/vigilantes' and so on, in EVE it's more like piracy vs the navies, because anti-piracy has barely existed throughout the years, due to low-reasons to care and little gain, and traders or haulers... chased out of low-sec ages ago. They will not be back, to be offered protection rackets, or prayed on, or shielded by anti-pirate patrols or anything, until low-sec become profitable enough to make up for the huge risks involved. Ultimately, that task falls to CCP.
In my opinion, I'd love to see piracy, low-sec industry, anti-piracy and everything related to them improved to the point where all 3 are viable options.