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The visitors won't be the issue, it'll be the actual content of the sites that'll determine whether or not you need more servers with less power, or less servers with more power.
1000 sites, if it's just a plain site for each (mostly text), no MySQL usage, no video streaming, can get away with a Dual Xeon server with as much ram as you can afford.
If the content is heavy, and requires a ton of server processing to deliver, then you're better off with 2-4 servers.
It all depends on the actual server processing needed to deliver the content to properly answer the question.
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