That "fragile gear" is lightweight and a lot better for hauling on backpacking trips. If you're not a gorilla and are careful with stuff, it'll last for decades. I had a cheap nylon tent that was probably 25 years old when I finally got rid of it; I sold it for $5 in a garage sale and it was still in great condition even though I used it extensively in Boy Scouts. I replaced it with a newer, nicer nylon tent that I barely use.

No, these tents probably won't hold up well with careless renters who don't care about taking care of stuff and abuse stuff. So why should I pay the same amount as a brand-new nylon test for some crappy old canvas tent with mold, which weighs 10 times as much, just so I don't have to own a tent? It makes no sense at all. I'd rather have a nice, clean tent that I own, and I can grab any time someone wants to go camping with me. Tents don't take up that much space when folded up. And even if the Walmart tent only lasts 3 trips, you'll still be saving money over the crappy rental tent.

Pffft. I bought 3lb backpacker 2-man tents on sale for $200. Used them carefully, they lasted for 25+ trips.

Oh! I see - yes those tents were fragile and high-tech and would have probably lasted less long in general use. So that's part of the problem - rental to the public is hard on equipment. Again, its hard to see a startup model here that would work.

Somewhat offtopic, how often did you have to re-seal the seams on those? I brought out some nice old tents a summer or two ago that had served me well as a kid and sadly found that it was as waterproof as a sieve.

Never done it. Those backpacker tents were made of some strange tacky fabric that felt like gel?! Anyway they lasted 5 years and then got lost (loaned out and never came back)