That argument is suggesting a linear correllation of effort to results, which isn't really so with creative work: in a hypothetical "better industry", because talent is more expensive and less exploitable, management has to step up, grow beyond cheerleader/slavedriver metaphors, and find ways to create more force multipliers throughout the project. Quality to effort ratio goes up -- and given a sufficiently high multiplier, the workforce produces more while working less.
I think this is eminently possible within games, and the growing interest in unions is reflective of agreement of that fact, of a desire to professionalize and negotiate towards work arrangements that follow what our current science tells us is best practice. If most game workers believed in linear effort to reward they would see the status quo as OK: not staying late would simply mean you lack "passion". And indeed, that was very much the case throughout the early history of the industry - passionate people who became bosses and focused in Panglossian fashion only on the particular metrics they prized, resulting in exploitative, fanboy-heavy, butt-in-chair workplaces.