To start with facts, most of the copyright holders are actually dead since copyright right now is very long. That's going to be hard to state that you are preventing new Beatles songs by pirating the Beatles.

Then in economics, free is different from any other price (even 1 cent), they have different behaviour and cannot be used interchangeably as demonstrated again and again during research. So no, your example is wrong, those people wouldn't have bought the song anyway and the total revenue from those people would be zero.

Your entire premise that copyright infringement is theft is wrong. That is not the case, neither morally nor legally.

As a result, your argumentation is flawed. The 1000 "pirated" copies were never copies that you had. Even in a world where you could magically prevent all sharing of information you would not have that many more copies sold.