You could say society has always been like that, and we as a society have decided it’s fine. Advertising as an industry is inherently manipulative, they want to convince you to buy their products, and they’ll use whatever strategies they think will work best.
It’s the exact same with the video game industry, they’ve just realized that “in store” advertising works really well. Yes, it’s manipulative, but people wouldn’t keep buying it if there wasn’t a payoff. I think buying digital items is incredibly stupid, but I also think buying trendy clothes and whatnot is also incredibly stupid.
If you think of cosmetics in the same sense as trendy clothes, it makes a lot more sense. It serves the same sense of vanity, and that vanity will always exist regardless of the laws you set. That demand exists whether you like it or not, and that demand will be satisfied as long as there’s demand for it.
Don’t take this as me saying I approve of the practice (I actively avoid those games on principle), just that I don’t think it should be outlawed. I do think we need policy here, but I should be limited to banning loot boxes, unless there’s a secondary market, in which case it should be regulated as gambling. There’s also an argument for treating F2P games as using F2P players as advertising, and thus banning it for minors unless there’s express, documented parental approval (unlikely to happen at scale). The second one is a bit trickier because social media companies have the same business model, and I’m not a fan of giving personal information to SM companies, so there should also be a way to separate that approval from actual identities (i.e. a digital token signed by your state/country authorities that verifies your age and relationship to the minor; should be automated).
I believe there will always be a market for games that respect your time though since there’s going to be a very real limit to how many of these there can be at a given time, so at a certain point, building traditional games has more value.