[srean]

> Meanwhile, I have lost hundreds or thousands of potential sales from people who may have paid, but have now been tempted to join your illegal caper. Everyone revels in the very public theft.

No you haven't, and there lies the crux of the argument. Many of those who helped themselves to the free copy wouldn't have purchased it at the retail price anyways, even if there were no free copy to be had. There is a financial loss yes, but multiplying the total number of free copies by the profit to the author off purchased copy yields a greatly exaggerated figure.