You make some valid points but... Complaining about a $5 user acquisition cost?
If you think that's expensive, try a field sales team.
If you think that's expensive, try a field sales team.
But anyways, in both cases what matters is the LTV of the customer vs the acquisition cost. The scale of the number doesn't matter.
I doubt this same scenario is happening with field sales teams anyways. It's much harder to scale up your field sales team than it is to just raise your online ad spend.