ばか！バカ！　馬鹿ー月！

Technically, fan works are a form of piracy, given that both are illegal by the fact that you are violating copyright.

Is fan fiction technically piracy though? I mean while there is that line of making a story true to the actual canon and ripping off the author, are they still bad?

That depends on who you talk to really.

So its subjective?

I would not say that it is wholeheartedly subjective. It is just one of those items that you might be able to debate and win either way.

Its still subjective to who you are talking to.

I guess, but there will always be a certain number of limited views on the subject really.

Is using someone else's art and modifying for an avatar considered piracy?

Well its not commerical, so it shouldn't be but some people are quite anal about it.

People on 2chan used to rage when bloggers posted pictures without a link to the source. They still rage a bit even now

Well, 2chan is pretty nationalist and...well.

I have found that it is best to ignore them.

2chan is otakus raging about other otakus who are technically helping fuel their obsessions industry.

So, basically, it is a group of NEETs with no life and only complaints who want to criticize those who probably have lives.

Correct. These are the guys complaining about fansubbing and scanlations to other countries who don't have access to them and expect them all to learn Japanese at a level where they can understand all the tiny nuances of it. Also, its bad to be a foreigner to them. Its like America's tea party, but online.