Right, today is very different from the 70's, and computer games are very different from table top games.
Anyway, I do think that the gaming industry would be much worse if not for capitalism. As you say you can find plenty of good passion projects to play, and even though most of them don't blow up some of them do, giving tons of money to people who have a passion for making games. If not for capitalism, the moment the person starts to add more workers to his project he no longer owns the IP since the concept of owning means of production is a core part of capitalism and IP is a means of production. Now I'm all for worker rights etc, but democratizing the decisions of how an IP should be handled and what should happen with game design etc isn't a good thing, I don't think the people he hires should have any say in that, I bought his products since I liked his vision and don't want new people to ruin it.