As far as the OP goes, it strikes me as an eminently cromulent strategy. We might surmise that in terms of loyalty, Pathfinder and Paizo customers describe something of a normal distribution. On one end, you have some folks who love Paizo as a company and/or love Pathfinder the game as perfect for their needs. These folks aren't going anywhere. On the other end, you have a similar number of folks who perhaps don't have any great loyalty to Paizo, and play Pathfinder not because it's absolutely the best for them, but because it's the best of the options out there. It's from this group that Paizo stands to lose the most, but they're highly volatile anyway, and are basically made up for with new players. Then you have the largest group in the middle. This group is the most varied, made up of folks who will stick with Pathfinder because that's what the group is used to and its too much trouble to switch, or who play multiple games anyway, or for whom Pathfinder is their only game, and they aren't interested in finding new ones. Even from this group who ultimately leave, they may continue buying adventure paths, Paizo's bread and butter, because 5e is designed to be relatively easy to convert to 3e.
It seems to me that, edition wars on the Internet notwithstanding, WotC and Paizo have distinct goals and distinct enough niches for their games and rulesets that they don't really need to compete head to head. And ICv2 numbers and edition wars aside, I'm not sure they really have been.