OK... since according to your arguement, the problem is bad product and your great niche content couldn't possibly be affected by free downloads, why don't you put your money where your mouth is and license me to distribute your product as I see fit.
I'll even make the unheard of distribution deal of doing a 80/20 split with you - where you get 80% of the gross proceeds from distribution.
Remember, according to your arguement, even if I give your product away for free, it won't hurt your business - so you have nothing to loose and an 80% of the gross to gain.
What do you say???