That makes sense. WotC's business model holds up... if we ignore the elephant in the room. Paizo.
If it is about maximizing profits, than you issues licenses for various products and produce a robust RPG line. D&D is first and foremost PnP RPG. Your fan base, the players, are the first who will buy you other products. You need them to be interested in your brand. Sure, maybe some people get intimitated if their are too many books. But are more put off because they feel the brand isn't supported?
More maximizing? You also sell PDFs. Books made of paper are in decline while the dematerialized ones are more and more popular. Store are more important? Paizo sells PDFs and it still managed to become the number one seller in stores. You also lower the price of your core books. Those are the gateway drug to players buying other books. That is Paizo's model. Their core book is 50$ and it is the DMG and PHB put together. Half the price in other words. For 10$ you have the PDF of the core book. Cheaper also means more players.
Just having more players is good? Make an OGL and a SRD. All of Paizo's crunch is open content. Just go to d20PFSRD and you have if all for free. The Adventure League modules, once the new season begins, just sell the old one as PDFs. 2,99$ a pop. Very low cost for you, you draw people to the game and make money. Win win. A lot of people do not have access to stores with AL games.
I understand the arguments people are putting forth to explain D&D's business model. I really do. They make sense. In a vacuum. When you compare to what other businesses do and it doesn't hold up. Either WotC is making another mistake or they just do not want to support D&D. If that is the case, I won't support them. The energy put into the AL tells me they want to support D&D. Maybe with their limited resources they have to prioritize. Obviously, I have doubt about their priorities.
I think it comes down to the fact WoTC just don't know how to make money off TTRPG D&D. Seems like they tried with 4e and "failed", so now they're trying something completely different.