Their counter-argument is that leaf services like that without measurable impact aren't things the company should be investing in and it is up to the individual to recognize that and re-allocate themselves onto something that's actually aligned with the company's goals.

You simply working on a project isn't useful to a company, what's useful is working on the right project.

You get promoted and compensated more if your work aligns with the company, and less (or none) if it doesn't. It's your job to figure it out. Just as it's the company's job to figure out what the market needs. Yeah, projects that are most valuable to a company will be competitive. If you don't want to compete, you'll have to figure something out on your own that isn't as sexy but still provides value.

This becomes especially true as you become more senior at this kind of company.

If you don't want to work in that environment that's fine, maybe that's not the right corporate culture for you. I hope you found somewhere that was a better fit!