The AAA industry can either stop being evil, or go extinct as they are replaced by indies and malicious actors like China.

The only problem with this idea is that it presupposes people must and will continue to buy games as they come out in some form.

Which might be true for some, but isn't a guarantee in any way. Gaming isn't like cars or food, where you are required to keep consuming products as they are made and must pick from the best course action. You could just stop buying games and play a stupidly large back catalogue indefinitely.