I think you're absolutely right, and it would be interesting (though impossible) to see this same thing happen with piracy and music industry. If there were a way to stop piracy and see how much the music industry sales dropped (assuming that they would), I wonder if they would get the picture.
I'm not sure the same outcome will hold. I would expect this to produce fewer views of Murdoch's sites, but I would expect the demise of piracy to produce more sales, because I don't think TPB and similar sites function mainly as search engines, and I think that distinction is important. Now, if YouTube were to be stopped (and all similar sites), I would expect that to hurt music sales in an analogous way to removing sites from Google.
