Your argument is flawed, because piracy is different to theft.
No, my argument is specifically that piracy and theft are not different. My argument can't be flawed because they're different if the argument is that they're different. That's circular reasoning. You can't just say that they are different without pointing out how they are materially different in a way that a creator is properly compensated for the content that they created since that is the entire crux of my argument. If a creator isn't getting paid for someone consuming their work, then that's theft. We don't allow people to consume anything else they haven't paid for in any other context so, unless you can make a meaningful distinction for a creator, you haven't actually addressed the central premise of my argument.
There is a potential loss with piracy, but that isn't theft.
It is not a potential loss, though. If someone consumes that media then it is a real, tangible loss. They consumed the media without paying for it. The idea that they may not have paid for it anyways is unresolvable with the idea that, if they hadn't paid for it and piracy wasn't an option, then they wouldn't have been able to consume that media.