The term in my mind is "Pay2GearUp", not P2W, although both terms tend to leave a bad taste in everyone's mouth.
I find that a more accurate assessment.
They would, this is why P2W once introduced (as it had been) will inevitable expand to destroy the game.
But you're confusing a game making a company money with a game in any way being worth playing, any game that makes money (especially in the short term) doesn't mean it is a health or good game, it just means it is making money for the game company.
Look at WAR dead in a development sense for more than 2 years now, but still making a profit. Does that make it a good game? No.
Good game based on what? Based on your playstyle and preferences. Right now, we are only assuming what a Western Style P2W type of model might do to a game. It hasn't been done yet in full force, so we can only surmise the end results based on our opinion of what is "good" for a game.
Back in 2005, players and the industry said you cannot create a good/AAA MMO without having a subscription based model. ArenaNet proved that theory incorrect. 2-3 years ago the industry and players said that no F2P game would ever be as good or polished as a sub based MMO title. That theory as also proved to be incorrect as witnessed by the most recent release - Planetside 2. We have not yet been able to fully test the theory that a Western Style "P2W" model could not create a good and successful game.
Again, businesses are in the business to make money. The current trend is that Cash Shops make a lot of money for an MMO, hence we see more and more MMOs adding them to their games. If it turns out that by allowing any and all gear that can be had in a game to also be sold in the cash shop is profitable, then you had better believe it will be done at some point. That game will be the lab test to see if it is a long term sustainable model. If it turns out it is, then you can bet on what the next trend in MMO business models in the West is going to be. You may not like it. You may not think it makes for a good game, but in the end that doesn't matter. Just like with WAR if enough people like it and it is good enough for them to make the game profitable, then that is all that is needed.