I'm not sure if I agree. From the perspective of the dating site you'd be right, the longer people are unable to find the kind of relationship that they want, the better it is for their business. However, from the point of view of the people looking for dates, if people are shown little to no profiles where it's highly unlikely that a relationship will happen, and shown mostly profiles where matches are likely, regardless of their stated preferences, and thus response rates and relationship likelihood rises, that seems like it can be a better outcome to me.
The real criticism of this model is completely different, and much deeper. People don't actually know what they want and who would make them happy, and they often conform / default to social conventions in their public preferences - e.g. maybe you want to filter out 10+ older men because you don't want to go on dates with "creepy" dudes, or you want to filter out fat women because you don't want your friends to judge you - even though in reality, you might actually be happier with those matches, or, more likely, those attributes are often orthogonal to your actual happiness.