This depends heavily on where you are. I personally don't spend an onerous amount of time applying for grants. If you're at what are called "R1" universities in the US (places like MIT, Stanford, UT-Austin, etc.), then yes, your job as professor (at least in STEM) is basically to run a research lab of maybe 4-10 people, which means a lot of personnel management, finding funding to pay them, and PR (although there is some research, mentorship, etc too).
At smaller places with either a teaching orientation or more of a mixed research/teaching orientation, things work a lot differently. I personally feel quite free in my choice of research problems and how I spend my time outside of teaching. We don't have a PhD program and I don't run a "lab", just do my own research, sometimes with BS/MS students and sometimes with colleagues at other universities, so I don't have a lot of funding needs. The university does appreciate if I apply for grants now and then, but maybe 0.5-1 applications a year (I got one small NSF one, which they were super happy about). I do teach more classes than at an R1: a prof there would typically teach one a semester, while I teach two. Overall I'd estimate I spend about 15-20 hours/wk on teaching my two classes (including prep, grading, etc.), 5-10 on administration/service, and thus have about 10-20 working hours left to do whatever kind of research I'd like to do. In the summer of course the research time goes up as I don't teach.
At the moment, partly due to industry hiring away so many CS academics, I believe it's actually a quite good job to be a CS academic at a non-R1 place if you like the teaching part and the salary is sufficient for your needs/preferences. The university knows that you can leave and hiring people in this area is difficult, so if you teach reasonably well, publish anything at all, and apply for a grant now and then, they're basically just happy you're staying. This is CS-specific though; academic jobs are much more scarce in other fields, so it's less of an "employee's market" there.
So really the choice comes down to the problem you want to solve: if it's easier to sell to reviewers do it in academia, if it's easier to sell to customers do it in industry.
(* if not the detail - non academic impact is worth quite a lot in uk academia nowadays, and you may at times measure that through e.g. sales figures, but these in turn must ultimately be sold to reviewers)
> This is, I believe, correct, and the problem.
I think it's a bit of the opposite: academia didn't get _that_ worse but entrepreneurship has gotten much much better. In reality it's probably a mix of both.
Also, imo writing papers feels more like "persuasion" than "salesmanship". For one, in-depth discussion of the shortcomings or drawbacks of your approach tends to be appreciated in academia.
This is, I believe, correct, and the problem.
> But I think they glossed over the main advantage of academia over entrepreneurship: shielding the researcher from market effects
Both I and others moved to academia for this reason. However, it is incorrect. Perhaps "market" is not the right word, but the life of an academic is dominated by competition for grant funding, and mostly focused on "salesmanship" -- more focused on selling than an entrepreneur, in fact.