This all sounds sensible, but the reality is different. These stories of the game pushing players away are (re)appearing every 3-6 months on forums (this is my 3rd one, if I remember correctly, since I started playing almost 7 years ago). Yet, the game is still here. Some have left, but many stayed and some new players emerged (and stayed).
Plarium is quite obviously watching its income. For example, recently they changed that if you bought a ruby pack for x money, all your new packs would get priced strictly above x money. No one I know bought these more expensive ones and I'm sure that the sales dropped. The change was reverted less than a month later.
So, no matter how reasonable your arguments seem, I am absolutely certain that Plarium would've changed their strategy if the reality was as those arguments imply.
Many player play only prizes. Personally, I don't see the appeal, nor do I understand how that works for them. Some play Farmville (build + train units, but don't fight). People have different strategies and different approach to what is worth their money.
For example, prize + prizes/exp tournament + global revival discount = extra units for lower price, because prizes eventually spit back what you poured in them and everything else is a bonus. So, 1) whatever you get in tournaments is a free bonus, and 2) whatever you revive at 50% is really equivalent to buying new for 25%. Works for some people and they'd deem it "worth their money" and they would disagree with your statement that "No one buys 23K rubies in order to receive a 3K ruby award in a competition".
As for other games, I came here (like I said above, almost 7yr ago) from Travian. It's a great game, but I could no longer afford the time it required. You could spend there, of course, but overspending got you very little further, so the playing field was much more levelled than here, and it's an example of the game that I would not call pay-to-win. No idea if that changed since I left it.