The fatal flaw with the current business model.

What, are you still on this?

I'm not wrong here. If you really need an example, just look at Lim Goon.
The reason for the loss in revenues Nexon has seen for the Western market is not because of hackers. It's because they have mistakenly applied the same tactics they successfully use in the Asian market.
The fact of the matter is that the western audience is far more intolerant to being manipulated.
This kind of business model alienates and disenfranchises the consumer. It is not sustainable. As time goes on, and as more publishers use this business model, that intolerance only increases, and all the monetization schemes will become less effective, and this business model will be entirely unusable in the West. If things go this far, either a new business model will be adopted, or, as is regrettably more likely, investors will panic and flee, and the companies will be forced to shut down their western divisions. Because of the lower initial intolerance in the East, this business model will continue there for a while longer, but there will once again come the failure point.