Yes. It is against different form of distributing pirated software than cracking it. My understanding at the moment it tries to prevent attack vector described in this old news for example.Then what's the point of the install limit? I guess it's so absurdly high that no normal person would be bothered, but its existence means a single pirated copy might have difficulty becoming public?
Denuvo’s game DRM is too hard to crack so a hacker bypassed it instead, — Hive
January of this year, well known Chinese cracking forum 3DM predicted that games would become uncrackable by 2018. The reason was a digital rights management (DRM) solution… by hardmanj
However I have not researched these piracy methods very well. So I am not sure what all install limit is for.