This is probably a small factor -- a much larger factor is just that gamers get bored easily and want to play newer games, even the skilled ones.
Most games will put players of similar skill level against each other, so the fact that there's a cohort of players who are much stronger than you can be totally invisible to your experience of the game as a weaker player, even when that delta is getting larger over time. Whatever skill level you happen to be at, there's probably someone else there too.
Psychology of game design - Sid Meier - YouTube. Games are so brilliantly built these days - designer for maximum addiction while keeping you constantly engaged at the perception of winning. Battle royal is brilliant in the way you describe it but also because you can finish 2nd just by doing nothing.
Most games will put players of similar skill level against each other, so the fact that there's a cohort of players who are much stronger than you can be totally invisible to your experience of the game as a weaker player, even when that delta is getting larger over time. Whatever skill level you happen to be at, there's probably someone else there too.