I wonder what the impact of pay to win type games?

Had an interesting discussion with my bro who is into gaming he says most of his peers are playing "pay to win" the games are only superficially based on skill and the only way to progress, compete and win is buying upgrades.

I stopped playing games seriously a while back so a bit out of the loop.

The games are rewarding $$$ over putting in the effort/time to learn. I'm curious about a few things:

What are the effects of these types of games?

Could it discourage effort, make people believe they can buy their way to skills without effort?

What are the impacts of constant gamification? The app stores are filled with toddler games heavily gamified. Are we creating a generation of people that will be purely extrinsically motivated?