This is absolutely the truth, and we've seen it happen to TONS of other games with similar builds. Your PvP crowd can sustain a smaller game, but if you want to stay funded and build a resilient IP out of a game, you can't leave your average gamer, who is the majority, vulnerable to sweat-lords and run-of-the-mill sadists.
It's important to keep in mind that ER:NR is just a bad game. I get it, some people Fanboi over it super hard, and get really angry when you point out that it's an objectively miserable experience... But it is. It's also got nothing that makes the other FS games resilient in the face of player barriers, like level based difficulty (you cannot level over a skill issue), lack of different play styles (there is no proper tank build or adequate support build), you also cannot customize your character in appearance or stats, which is a much bigger deal to a lot of players than the ones that it doesn't matter to think it is.
Overall, I'm sorry I bought the game and I did not waste a bunch of time playing it, because it's just not fun. It looks like I'm not alone in that sentiment.
Wilds was better than no monster hunter game, but not by much. It's okay fun, I enjoyed the bite sized hunts returning from Rise, but the story is miserable, the NPCs are insufferable, and the end game is just abhorrent, redundant grinding for nothing of real value. Capcom has also gone out of their way to offend players microtransactions; it would behoove you address just how troublesome the corporate practice of offering premium versions of games with content passes, and then compounding that expenditure with a trove of insanely priced additional content is.