So how about yes, let's focus on fixing the problem at hand, and if it's used for something else(like single player games) then I'll complain about it. Right now developers have my full support to use whatever methods they can to make sure the hackers stay out. The game can boot into its own OS for all I care.
That's why I'm not really worried about this tech "spilling" to single player games to protect MTX or anything like that, but I'd really really really like to see it deployed as aggressively as physically possible in online competitive games.
As you pointed out, what the vast majority of gamers will respond to is performance. In order to get performance, you have to start cutting other areas like graphics. However, those are other important aspects - maybe particularly to marketing.
The reason it's not palatable enough to be widespread is because of it's technical limitations. If you throw enough resources at the matter to remove those limitations, you won't see all the pressure you're mentioning that keep companies from making maximal use of this kind of tech in all games all the time.
I'm pretty comfortable erring on the side of caution here. Cheaters are rather annoying, but at least it's a relatively contained problem with a fairly wide range of options for how I want to respond to it. Worst case, I can go try to find a smaller community or even just go play another game. Meanwhile, most every game being fully locked down in all the ways... I can't really do jack about that.
Don't ruin my ability to run graphics mods on GTA, ha