As I see it, closing a question strictly because the asker admits (or implies) the use of an illegal copy, is a misuse of close votes.
There are two major problems that arise from this, "Piracy == Close" policy. The first has been demonstrated by Sterno, who re-asked the question that sparked this whole debate.
Ignoring the comments and edit history of each question, here are each of the question bodies:
Question 1:
I'm doing quest Discerning the Transmundane on xbox 360 version
1.0.0.0. I've killed orcs, falmer, high elves, and dark elves but I can't harvest their blood. I can only search them(loot).
What am I doing wrong?
Question 2:
I'm doing quest Discerning the Transmundane and I'm on level 15.
I've killed orc, falmer, high elves, and dark elves but I can't
harvest their blood, I can only search them(loot).
I'm playing on the xbox360, game version 1.0.0.
One of these questions is still open, and the other has (at time of writing) been put on hold as off-topic. Which is which? Does it matter?
Voting on a question (up, down, or close) should be done based on the merits of the question alone. Before voting to close, ask yourself: "Would this question be acceptable if it was asked by someone else or without the last paragraph?". If the answer to that is, "yes", then you should not be closing the question, you should be fixing it!
The second problem with such a strict policy is one of community stigma and retroactive consequences.
To use a personal example, I have asked one hundred and thirty six questions and answers in the Skyrim tag.
If, tomorrow, I were to admit that I have never owned a legitimate copy of Skyrim, and every single one of those was based on a pirated version of the game, what should happen? I'd have admitted to using a pirated copy, which means that all 21 of those questions should be closed? That all 115 of my answers should be deleted and invalidated? Should I never be allowed to ask a question in the skyrim tag again?
We don't judge the source of Arqade's content, we judge it's quality. I suppose I'm advocating for a specific, "Don't Ask, Don't Tell" policy -- as long as you're not actively advocating to pirate content (or looking for us to help you do so), you're welcome to share your knowledge, or ask questions.
And I'm going to have to strongly disagree with Badp about identifying pirated content. With the rare exception, I'd be willing to wager that the vast majority of questions on Arqade would be identical regardless of the copyright status of your game.
And I'm going to have to disagree that "version 1.0.0.0" or its like can be used as a reliable indicator, as well; people without wi-fi may never update games on their console, Steam Users can prevent automatic updates of their library, and when developers release stand-alone patches, even pirated versions can be "up to date".
I agree with Agent86 -- if all references to pirated content can be removed from a question (or answer), that should be done, and the question let stand. If that means the only right answer becomes, "Update the game to the latest version", I am okay with that.