I also understand Satoshi Nakamoto owns at least 1 million BTC that is assumed to be gone forever
What makes you think they're lost forever. The personality behind Satoshi Nakamoto was highly technical savvy and I don't think they would lose that Bitcoin just like a novice. That because the alleged one million Bitcoin owned by Satoshi haven't moved for over a decade now doesn't mean they're lost. The owner believes it's too early to touch them. I guess there's a higher price projection set for Bitcoin and Satoshi feels it hasn't got anywhere close to that level.
This leaves me with a very hypothetical question, what if all btc is burned (or lost)?
Expectedly, a part will be lost but definitely not all. I'm one of those who believe there's no way 21 million bitcoin will ever be in circulation. It's commonsense to expect that.
~snipped~
The good thing about the loss of Bitcoin is that it creates shortage of it in the market and that kind of causes price to react upward to it. Scarcity gives a thing its value, as they say.