It sure does and leads to more sales when big mods are released over the years. I personally made one for S.T.A.L.K.E.R. - C.O.P. (2009) and my project released in 2018, still very active in 2023. Players are required to have the original game of which I think the price has gone up (curiously not down) in price since Stalker 2 was announced.
I think I get what you are saying, a developer who thinks perfection can be achieved is badly mistaken. Not being able to reuse, improve a product and having to reinvent the wheel on source code countless of times is a waste of time. But on the market we must consider you offer someone a product on your conditions and the customer is free to agree or disagree. It’s about law and license.
Example: I license one of my programs in a way that it can be sold but has to remain open source, even when a new program is based on my code it must remain open source. The license on that new program may not be modified. My program may be sold but I offer it for free.
There are plenty of ways to set up your conditions and it is relevant to battle piracy.
Frequent updates that automatically download, a trusted source (customers don’t go to torrents), proper and easy refunding methods, good ux, do what pirates don’t do. Make pirates redo their cracks every other day and make them lag behind on updates. There are ways… Fab has a real challenge ahead.