The consumer is not always right....
Apple and Google care about the attractiveness of the platform. They want you to buy the phone with the impression that apps are included for free.
I don't agree though that there's only up-front payment or freemium options on the table, nor do I agree that consumers wouldn't accept up-front payment if that was really on the table.
Consumers paid up front for games on the Gameboy and other handheld devices, and they paid enough to keep that industry alive right up until mobile games took over.
Any expectations consumers have right now that mobile games should be free is on the publishers, not the consumers - and while consumers are enabling and supporting the freemium casino model, I don't think that us humans in aggregate have as much freedom of choice as we like to believe.
Regulation is the only way out of this bind, but with the continued rise of neoliberalism that's just not going to happen.
Seems to me like a chicken and egg problem where the entrenched nature of freemium games create a consumer expectation that games should be free up-front, causing consumers to avoid up-front payment, which causes up-front payment models to be less successful, which further entrenches the freemium game model, etc.
I agree with you on principle that it's up to publishers to make the effort to change this model, but I don't see how that could happen without some external nudging to overcome the market forces at work.