The problem is that these systems, with the exception of expansions / season passes only work in GaaS, not regular AAA releases where the budgets are often higher and additional monetization would be harder without compromising the coherency of the single player experience. Maybe a retail price hike is unavoidable if you want to keep the industry sustainable without having to decrease development budgets, but if one game starts aiming for 80$, all games would at some point, just because people are willing to pay it, even if the budget doesn't necessitate it for all of them.
On the example of Overwatch: Would you be ok with a system where you buy a season pass every year that gives you all of the year's seasonal content once it comes out, but you can still earn random loot through playing the game? That would be a system where there's a clear cap of how much you have to spend to get everything while still offering a way to get skins without spending any money.
I mean, microtransactions in general don't work in regular AAA releases, yet Activision, EA and Ubisoft are forcing loot boxes into single-player games. Forcing a clothing or weapon shop into Shadow of War wouldn't be any harder than making up an orcs-in-a-box vendor.
Development costs outgrowing retail price is a self-made problem. Big publishers kept raising player expectations beyond what 60$ could sustain. Now big publishers are trying to solve the problem by pushing for more microtransactions than the player base can sustain.
I don't know what kind of price hike the american consumer would stomach, but over here game prices went up by around 10 Euro with the launch of PS4 and Xbox One.
GaaS games like Overwatch have better options, especially since they want to keep the entry cost low to get more people into the ecosystem. What I'm okay with is fluid and depends on how much I enjoy a game, like a developer and my general degree of self-loathing on any given day. I'm trying to think of an existing game with a model much like what you describe and can't come up with an example. It sounds preferable to Overwatch's current business model, assuming drop rates and availability of free loot boxes are not tuned any less generously, though selling a year's worth of content only as one big package would probably be priced so high the option may as well not exist for 90% of the player base.
Semi-unrelated question but since I don't play Overwatch myself and I'm now curious: Does Overwatch give players the option to turn off cosmetics so only each hero's base character models are shown in game? I felt put off enough by how TF2's hats altered the character's famous silhouettes, I can't help but ask what harm entirely different colored skins do to readability in a shooter.
