But if "necessity is the mother of invention", shouldn't crippling necessity foster innovation?

Maybe. But only where that innovation helps in survival. Perhaps that's where the "jugaad" mindset comes in - innovative but for survival.

And of course, the root of all is always greed and FOMO adds in to that. Everyone wants to be the big player, wants to acquire the top 1% consumers, disallow total ownership so they can keep customers locked in and keep milking them with subscriptions

Sad state of tech TBH

IMO major cause has been VC/investor oriented goals where companies have to pivot to new tech even if they don't want to just to secure funding/increase shareholder value/cave into their demands

Private companies seem to be doing far better in comparison (ex. Valve)