[0]: https://www.gamedeveloper.com/pc/exclusive-exploring-i-guita...
[0]: https://www.gamedeveloper.com/pc/exclusive-exploring-i-guita...
A few years prior they did NOT have that kind of money. The history of Guitar Hero is that RedOctane was involved in manufacturing third-party softpads for people importing DDR home games from Japan. They saw GuitarFreaks in a Japanese arcade and contracted Harmonix to build a game around a guitar controller. The game they made, Guitar Hero, was startlingly low budget, with loads of covers[1]. Nobody had any money to license patents.
In terms of the cost of actually keysounding a track, relative to Harmonix's patent workaround... I'm not entirely sure. It could go either way. I could imagine some automated/cheap way to do 'good enough' keysounding could have been made, especially since they're already charting out note data.
[0] For example, I said Harmonix was involved in the ITG lawsuit but it was actually RedOctane who published ITG. I'd edit my comment but I can't find the edit link.
[1] Which arguably worked in the game's favor - I do remember people noting that the all-masters-all-the-time approach of Guitar Hero World Tour made playing vocals feel strange.