people that get their music from AA would never buy it or pay spotify for it, so the "loss" is completely imaginary. same goes for movies, videogames etc
in some sense yes, as long as there are sources of good enough cheaper alternatives millions of people won't ever pay for Spotify (or even use the free version with ads, but the free-with-ads version is in itself a good enough for many many many people), but of course in a vacuum with only Spotify people would probably pay for it!
though the determination of damages is usually completely all over the map (and usually skews high to serve a punitive purpose, though I doubt it has any real deterrent effect).
This is bad epistemology. Incentives change the behavior on the edges.