In a reality where there are no paid games (I assume Witcher-tier single player games would be free), those wouldn't necessarily become a cancer. It all depends on what games you must compete with. Also there are many ways how you can implement cosmetics and other DLC. FOMO enforcement is not something that should automatically come with any game. Deep Rock Galactic handles paid dlc, free seasons and cosmetics brilliantly in my opinion, and I don't see why other games can't have success if they did it the same way. Maybe it's a combination of original financial decisions, game quality, players reactions and overall current situation/background.

Also I can't get rid of the thought that there is an underestimated connection between spending money on a game and desire to spend time on playing it. It seems that if developers of good games would be suitably rewarded according to players satisfaction, there will be no need to pursue financial success by pushing cancer on players.