I think there's probably a hasty assumption that either this article is (it's not) or that it could be used for (it probably will) judgment type musings about how young people are irresponsible and are the cause of their own struggles, similar to the avocado toast commentary.
The article itself is just the result of a survey that happened to focus on young people, and I agree it's more appropriate to think of it related to a relatively new form of gambling/manipulation that's causing problems
After coming off the incredibly successful Switch generation and Mario Kart 8 being essentially a decade old game that's sold over 70 million copies, I just don't believe that this is a decision driven by absolute necessity. I'd have begrudgingly accepted the standard PS5 prices of $70 games and $10 upgrades which I already thought were usually overpriced, but raising another $10 seems ridiculous. I'm thinking I'll pass at least for a few years
General inflation doesn't quite translate directly in all cases and is just a reference. In video games, costs have increased, but revenues have increased primarily through micro transactions and a growing market/sales. There's virtually no marginal cost to produce additional units with software, so the revenues become a balance of price, demand, and supply (for hardware). They are expecting that the price increase won't result in a significant drop in demand so that revenue increases. If they're wrong, this will be a huge business mistake. If enough people purchase anyway, like you, then they'll increase revenues and this will be considered a great business decision
If you're willing to play on low, a lot of games should run. I played Baldur's Gate 3 on a similar build on about 1080p medium settings