its more or less that yes. they saw the money but not the time and effort to get users to use your platform.
and its not like impossible, as long as you can create games people will play and stay at itll work (e.g Riot), but they legit put such little effort in the launchers that it was creating a negative user experience, and never put in the money to make it better.
its not exactly for the positive reason you think. theyre trying to prevent the class action lawsuit going around the (UK?) right now and realized when a certain amount of people take the arbitration, it gets fairly costly, so they reverted on that clause.
regardless fuck arbitration, its like paying off judges but even more transparent about it.
its basically doing the right thing for the wrong reason (reverting arbitration cause not for thr consumer, but for their wallets)