I don't think it's blown out of proportion, they just have no clue how to deal with a market where the worker has more power and they're dependant on them. The last time this happened was in the 50s/60s and most western countries started importing workers from abroad to push down wages. Through their own racist divide and conquer, they can't do that anymore, so they've painted themselves into a corner where all options lead to better circumstances for workers.
The answer not mentioned is something that doesn't exist anymore: the rental market. You could rent games just like video tapes. Not being able to beat it easily within the week you had the rental meant you would probably rent it again, leading to a longer shelf live and a happier video rental owner. Ecco the Dolphin's final level was literally made with this in mind.