Yes, that's important. And it's also important to always keep in mind the limitations of your models. (That's constantly on people's mind in finance already, by the way.)
> People who play games tend to have a pretty loose grasp on the real world. Especially people who play games with other people's money.
Citation needed, I guess?
And when anyone points these things out, they complain and deny responsibility. "If I don't someone else will. Why is the government always on my ass trying to interfere?"
This seems like a whole hodgepodge of complaints about some boogeyman?
Eg for what it's worth, I've worked in finance on and off, and I can assure you that most people 'who play money games' do not 'trade in weapons'.
Trading weapons is a fairly specialized niche, and your average stock trader has no clue about that niche, even if they wanted to get into that specific market.
There might be other things wrong with people working in finance. But not all people you don't like engage in all the vices you don't like at the same time.
Btw, I suspect most weapons trading is done to prop up governments, not to undermine them. (Even thought neither you nor me might find the governments in question very sympathetic.)
Don't lose track of the two senses of "game" being used.
The original post only mentioned game theory, and you complained "To operate at the game level of abstraction is sociopathic."
When we speak of the game abstraction in game theory, we are not talking about amusements. The term for the concept comes from the study of amusements, but in the context of game theory, a game is merely a situation where at least two participants make strategic decisions that effect each others' outcomes, potentially in the face of incomplete knowledge.
In this sense, "People who play games" are people who make mutual decisions which affect themselves and others.
Whether you apply the mathematical insights straight up is another question. But there's no excuse for being sloppy:
'Physical resources, actual human lives' deserve optimal play.
A sentimentality that treats a single photogenic orphan as more important than the plight of many does not cut it.