Morkus from Orkus
Not necessarily. There are people(a lot of them) who will pay to be whipped, cut and spit on. If D&D would have generated 100 billion but, only generated 10 billion do to "sucking the fantasy out of the game," the remaining 10% could be that minority of people for whom painful changes are appealing.But if it "sucked the fantasy out of the game" it would have not have generated a $10B.
Again, I'm not claiming that the fantasy was sucked out of the game, but only that your logic isn't as strong as you think it is. I personally found more magical feeling in the fantasy of 1e-3e than I do with 5e. 5e still outdoes 1e and 2e for me, but only because I think it's a much better designed game than the first two editions. Not because of the fantasy feel of it.