There is a lot of revisionist history going on here. Apps started out charging less than $3 so the low value was baked in from the beginning. The assumption was that consumers pay $40 for an 8 hour game so an 8 minute gameplay loop necessitates a lower entry point. There were free titles from day one but these were often littered with ads which consumers did not like.
Ngmoco’s iOS FPS ‘Eliminate’ introduced freemium barriers to gameplay, partially to lessen the blow on servers for a small dev. Paying for more lives on a 10-minute title though is the exact same game mechanics the Arcade industry had been using since the 1970’s.
Despite the iPhone, Nintendo sold over a 100m DS consoles, Sony still sold 70m PSPs and the 3DS sold over 75m units.
And despite perceptions to the contrary, the premium market on iOS has been thriving. You can play every major JRPG released between 1986 and 1999, many of which go for $20+. The platform has indie parity with the Switch, with titles like Hyper Light Drifter, Hades and Cassette Beasts littering the market.
Capcom seem to think that porting more Resident Evil titles is a good idea so clearly they made some profit from doing so. The iPhone has been home to a lot of PlayStation titles for a while. Games like Flower, Journey, Unfinished Swan and Death Stranding are nowhere near Android.
Devs of quick-play titles still offer everything up front. Alto’s Odyssey on iOS is a $3 upfront title; on Android it’s F2P with pay-to-unlock on everything therein doled out piecemeal.
As a gaming platform iOS is in rude health. Free cloud save backup, cross-buy and play between TV, iPad and iPhone, support for every major controller going, infinite controller profile rebinds (something my Xbox doesn’t have) and now emulators are on the platform.
Loot boxes, Gacha mechanics and leftover currencies are all scummy casino-style mechanics designed to addict gullible players. But when even the EU hasn’t outright banned them are they as addictive as the media make out? The freemium market created itself and like it or not it makes a lot of money. Hoyoverse, makers of Genshin Impact (actually a decent game!) make more money from two/three titles than Sony or Microsoft.