The kind of corrolary to this is that any game that is stagnating eventually becomes just a fashion show of cosmetic competition.

With MMOs, you can see that by the end stage of its lifecycle, no one is even really playing the game for the sake of playing the game, the community is probably insular and ossified, and is just literally competing in terms of style.

With MTX games full of cosmetics from day one?

Yep, the game is functionally dead on arrival, expect little to no meaningful free game updates, lots of stuff will just be broken and probably never really fixed...

...because the whole point of such a game is just to be a platform, a marketplace, for selling you 'digital goods', and it just uses the form of a game, and often all the dark patterns, to lure you in and keep you addicted to it.

EDIT:

Upon further reflection:

A Gacha game very much is, imo, a psuedogame, in the same way a pseudoscientist is fundamentally an impostor, only superficially behaving as the true thing behaves, which it fundamentally is not.