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Why is moneyhatting frowned upon? Because it's basically spending money to take content away from gamers.

A lot of people seem to be confused about the differences between moneyhatting and funding a game.

Bayonetta 2 or Sunset Overdrive = funding = creating games that wouldn't have existed otherwise = good

Tomb Raider or additional WD/Destiny content = moneyhatting = taking content away from gamers = bad

The money spent on moneyhatting could actually be used to create a new IP or revive an old one, instead it's wasted on preventing gamers from accessing certain content/games.

 

Let's take this whole TR-situation as an example:

Option 1: MS pays for TR exclusivity => XBox gamers get to enjoy TR, nobody else gains anything

Option 2: MS takes TR-exclusivity-money and spends it on funding a new game => everybody gets to enjoy TR, XBox gamers get an additional game

Unless you get some kind of weird enjoyment from withholding games from other people, I don't get how Option 1 would be in any way preferable.