Are game developers fucking idiots? Apparently so.
Yeah, because the market for new cars was destroyed by having a used cars market. Or the market for new laptops, or cameras.
Actually it is pretty well-known economically speaking that a healthy and robust used market supports the new-goods market. After all which product are you more likely to buy: a brand-new product for $100 which is impossible to resell and has to be thrown away if you do not like it, or a $100 product which you can resell for $75 if you donโt like it?
Q.E.D.