No, its not. If an account gets banned after an hour, all that happened is that the user got is 1 free hour of playing a video game. There are easier ways of pirating videos games than that.
So really, thats good enough.
You tried to claim "The fraudster scales up their account creation". And I am telling you, that if a fraudster wants to play a video game for free, there are much easier ways of doing so. By just pirating the game, for example.
So that specific point is wrong.
> or so say the guys sitting in the cheap seats
Actually, it seems like you are the one sitting in cheap seats. Because you have already straight up admitted that you don't really know much about the industry. Whereas, people like me, who do work in the games industry, do know about what a good user experience is for people playing video games, actually know more about this than you do.
So, in other words, you actually should "care how well it would work". Because how well it would work, is integral to the attack vector.