I LOVE that part of the script!!! very intense. it's from the second version right?
lovethemtigers: I don't think that the pieces of eight are passed through generstions for three reasons (this is just my opinion).
A) I'm not sure about this one but I don't think that Jack's father was a pirate...at least not at first because Jack landed in the EITC and for that u most have a family of (if not high) normal standings. But even if Teague WAS infact a pirate and Jack just got into the EITC al on his own or whatever Teague wouldn't be planing on giving his piece of eight to his son..who was working with the EITC at the time.
B)In the first part of the second version *SMALL SPOILER AHEAD* there's a pirate hanging and a piece of eight is shown tumbling and spining on a balck surface and black background and that piece is suspected to belong to Teague *END SPOILER* and if that is true than Jack and Teague each have their own piece and Teague couldn't have passed his on to Jack.
C)most pirates don't have children(at least none that they know of LOL) so that method wouldn't ensure that the brethern stays up and runing after the first generation and I think T&T thought of that too. They're reasonable enough...kinda...sorta.
So my theory is that the pirate lords are picked from the most able pirate captains of that time with the best ships and crew and that the pieces of eight are these coins..very powerfull coins that the original pirate lords used in the very first pirate gathering. To trap Calypso in human form becuase she'd disturbed the sea, creating storms and not letting them carry on with their plundering.she was realy furiouse over the whole Davy Jones thing. And that's why I think that the pieces of eight are the keys to Calypso's situation and tied to her in so many ways.
Just a theory! I'm not sure AT ALL but it seems logical considering what we know up till now.