That's not unique to game development. Or software. Or any industry, really.
> The second problem is that the industry does not pay for reasonable estimates, they want imperfect unreasonable estimates which are very conservative with which to beat the employee or the contractor over the head with to force overtime and crunch.
Of course, but that's because the estimate is not being treated as an estimate. It's being treated as a plan, or a goal.
I read a book called Industrial Megaprojects in which the author, talking about civil and industrial projects on a gigabuck scale, lamented the same problems.