So basically, bundle economics work if you ignore the existence of the market for those games.

Yeah, that sounds about right.

You would never cut a software developer slack for putting "no reverse engineering, no exploitation" in the ToS and then being surprised when vulnerabilities are discovered, business people need to consider basic stuff like this too. Markets for things exist outside of yours.

Additionally, I never even agreed to a ToS buying the early Humble Bundles at least and a hidden ToS is unenforceable at best.