There are too many breakout indie hits developed by one person or a small team that prove this isn't true across the industry.
AAA development may be that way because there are higher expectations, just like blockbuster movies invest heavily in special effects and A-list celebs. But at the end of the day gamers just want to be entertained.
Exactly! I especially like your point about T2. I don't think it's wrong to put a lot of money behind a AAA game, but there needs to always be a balance weighted toward the creative/entertainment value (whether it's innovative game mechanics or story driven).
Once that balance shifts to the business side by focusing on recouping the investment is when a project is at risk for not being received well.
I think all gamers are ok with studios making a profit on their games, but don't try to fleece us.