I would say both are fraud. I feel ok about it mine because my partner is doing an Open University course so technically it's ok. Having kids at school I think makes it ok too.
I wouldn't install a cracked OS because I'd be scared what else the hackers had done to it, not because I'd feel guilty about not giving Microsoft some more money.
On downloading "free" software I take the view that I won't download music or software from torrents that I would buy. I feel that if I download say music that I wouldn't be prepared to buy a CD of I haven't hurt anyone ... as far as I'm concerned theft means depriving someone of something (morally if not legally).
I await the abuse