It will happen and probably pretty soon. I've recorded music using garageband on the mac. The Kodi is too techy for my interests though and again, not interested in bootlegging television or movies. There is enough affordable stuff I can watch in fact too much. For 10 dollars a month (Amazon prime) I get free 2 day shipping plus access to thousands of prime viewing content, add a netflix for 10 dollars and for whopping total of 20 dollars a months I can't keep up. the good thing is it's all legal, no fear of lawsuits or getting thrown in the pokey....bonus is a clean concious and good karma.
Kodi has no inherent capabilities to pirate content. The Kodi maintainers go to great lengths to keep everything Kodi above board.
However, since it open-source, it is trivially easy for people to develop add-ins and distribute them outside the official Kodi ecosystem.
Also, keep in mind that despite what content companies claim, merely downloading and viewing pirated content isn't illegal (so long as you don't financially gain from it). It is distribution of pirated content that is illegal, and will get you sued.