Even a bad WoW is going to make them more money than the best version of a TTRPG ever could.
Publicly-traded companies exist to make money; if this path could make them more money they're basically obligated to do it.
I get Matt's despair here, though I remain hopeful that this isn't actually what they want to do. That they'd like to keep the RPG going strong, instead of sacrificing it on the altar of their other monetization schemes. But I certainly don't know that this is what they want to do.
And, it's still possible that whatever their scheme is crashes and burns. Hasbro's been pretty great about entirely falling on their own faces with most of their portfolio.
FWIW, I think WoW is a slightly dated thing for what they're actually going for. Colville mentions loot boxes. If that's near the target, it's more free-to-play / freemium online tabletop or something. A live service. Which can be a lot cheaper to launch than a full MMO.
I work with a lot of young players. Those hyperbolic, dystopian tweets are ridiculous. Young players like making characters and debating rules and hanging out with their friends, the same as we did. They will also do it online if they have to, and some will use VTTs to enhance their games even in person (it's a LOT cheaper than miniatures!), but this is not going to suddenly become Fortnite. Come on. How would that even work?
Kids want to hang out with friends. It's not like they will suddenly not be human teenagers anymore because a VTT is available. It's not like they will stop being creative and imaginative. Every new technology always makes us old people freak out because we assume that if it isn't the same as it was for us, it must be broken and wrong.
Here's a thought: maybe young people will take new technology and use it to enhance their natural curiosity, imagination, and creativity. You know...just like we did. Just like young humans have always done. Young folks no sooner invent a new tech than even younger folks start hacking it. It's the way of the world. Oh, and older folks complain about it. The circle of life.
Matt Colville has been a champion of new GMs and a very positive influence on the hobby. To see this reaction is ... heartbreaking.
I know I've had my struggles with this, but I hate to see it from him.