1. I imagine the reason that Microsoft is 'retiring' the abuse@ address is because........it's being routinely abused by hundreds of thousands of people who send them just that - abuse.
2. That is not, and never was the address to which copyright-infringement information should be reported. The precise method differs from country to country, but here, in the UK there's an online form for anonymous reporting
click here for details.
3. Microsoft are aware that there are tens of thousands of people offering pirated copies of their software at silly prices, but I doubt they can keep up with the flood of reports. Increasing reliance on verification before activation, and a refusal to patch or update illegal products is undoubtedly one way they aim to reduce piracy, but the jury's still out on the effectiveness of such measures. More technology is in the pipeline, and one thing's for sure - Microsoft isn't going to sit back and watch potential revenues leak away if it can be helped.