It won't bring down the industry.
I know there were a few overly thought out theories as to why it could, but rentals say no. Used games say no.
Often times, the PSN+ games that show up are ones that were overlooked upon release and giving free access to subscribers means these games get a second chance to be played. If said game has any appeal, the player now has that developer/franchise on the map the next time they release something.
Similarly, place a game on the PSN+ instant library list that has an upcoming sequel and the developer just got PR and marketing for their upcoming game.
People should take a step back and think of how the free to play model can be used. You can't just think in terms that support one particular argument or point of view. There is an upside to everything.
SCE has already been experimenting with games like Warframe and Blacklight that are free to play with in game purchases.
Games that are made available on PSN+ can similarly offer in game purchases or DLC.
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