Piracy of 100 in 1 cartidges for Game Boy was a thing along with Adibas bootleg. Memory was limited and the games are simple because of it. I had a 1 in 4 with space invaders and that was a comparatively shitty game but a hit on Atari (minimum viable product, worse than asteroids). So what killed Atari was extremely low quality, plain and simple.
You may have a point on price control, because I saw no main titles, and I remeber more recently the Mame community held back on (highly priced) arcade titles to not compete with sales. But you present a false dichotomy because quality control is marketing.