That makes sense, but I am skeptical about increase in development time. Even 2D side scrollers seems to take forever these days. That is major contributer to cost. Some mentality in current gen developers might need to be changed. Scope of games, content, and game length need to be realistic.
A standard 3rd person action adventure nowadays takes 20 to 30 hours to finish. That's crazy. Most gamers do not have thst time to spare on a videogame. If games do not sell enough it's not because people don't pay, it's because people don't have time.