The reason i see every iPhone and ipod user playing candy crush saga is because clearly it is a paid app /s.
People like free stuff but a normal person will not pirate. Plenty of folks buy stuff on google play as well.
The problem is, indie games which are not as popular as titles like angry birds, temple run, candy crush (the later two being free btw) have a hard time making money on either platform, with iOS being easier because many ipod and iPhone users tend to gravitate to mobile gaming (especially when you factor in the ipod crowd, and the fact that ipads are still killing android tablets in gaming, which shares a common platform with iPhones). There are many issues with android gaming, but i doubt right now piracy is the biggest one. I think it is mostly lack of hardware and software that portrays itself as "player friendly".
For example, google only recently started with the cloud gaming sync solution while gamecenter has been thriving on iOS for a long time, there is no "ipod" like hardware for people who are not looking for a smartphone or for the younger crowd that is available everywhere, tablets are slowly catching up in productivity software but indie games are still not there, while an ipad mini has all the ios games catalogue on it the moment you fire up appstore. In other words, not many chances of recognition. Add users who buy those cheap android devices which can barely play a game properly and it only adds to the hurt.
Stopping piracy may help, but i honestly doubt that will alone lure indie game devs to the scene.
And this is where i have my respect for samsung, their effort to make galaxy a household name, and in turn helping the android ecosystem, as probably pushed more game devs to make games for those galaxy users than the rest of the android OEMs combined. And this is sad that someone with a low design sense has been able to take great steps to be successful compared to others. Only they are to blame.