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That brings me back. I no-lifed Eco for a couple of weeks on a public server with a few friends close to the Steam release and it was a surprisingly fun game to optimize (until our group got called into a "tribunal" for suspicion of exploiting, because our 4 players had progressed much further than the rest of the 200+ player server: supposedly we were abusing a bug that let you respec professions for free, in reality we simply specialized purely into unlocking better tech and completely ignored all of the efficiency bonuses, powering through with raw playtime). The player economy stuff was great: our currency become the de facto standard by cornering the market on higher-tier tech, and then we could discreetly mint more coins as we needed to buy up raw resources for "free". I haven't kept up with the game since, but as I understand it there were quite a few updates to prevent that particular style of gameplay.
Re: Palworld, I think your assessment is largely on the mark, though with a caveat that Palworld, mechanically, does interesting things that other (multiplayer) survival/base builder games don't. Or at least it tries to, anyway -- there are obvious issues that may or may not be addressed. Sure, Conan Exiles had a similar "recruitment" feature where you kidnapped enemies and forced them to work in your base, and you could even bring them along in a party, but it was quite horribly executed (IIRC with default settings you needed to "break them on the wheel" in classic Conan-fashion for literal hours: in Palworld you just toss a sphere and pray to RNGesus). Pals have needs and will path around your base to fulfill them: if you drop resources, they'll actually go pick them up and deliver them. This isn't technically impressive or anything like that, but it brings Palworld a step closer to something like Kenshi vs. a game like Conan where the NPCs are just crafting boosts. I recently played Enshrouded, another new Early Access survival game, and while I love the voxel-based building system (though I wish there were a few Valheim-style restrictions, like with smoke/structural support) the "NPCs" there are literally just crafting stations: you dump them in a spot and then they're completely static. At least in Terraria NPCs wander around a bit! It is shocking that no other game attempts what Palworld does. Hell, even Starfield, which is singleplayer(!!) has an utterly undeveloped base-building system compared to Palworld, and that's a game that had both Fallout 76 and Fallout 4 to build off of, but somehow managed to be a major step backwards.
Dealing with NPCs doing things in any not-fake way is surprisingly rough, especially if you have any serious amount of building or terrain movement going on -- I dunno whether it's technically impressive, but getting it to behave non-crazy ways without chugging down a server takes more effort than you might expect.
I did some unrelated small work (json and ui futzing) on a Minecraft mod called Minecolonies a few years ago, which tried to have 4 to 250 npcs doing pretty basic activities in a well-defined range, and the developers who were running the main pathfinding code had to pull some amazing tricks and awkward compromises to have it work, and it was still extremely scary just trying to help diagnose or replicate failure modes. Just the question of 'find trees in X blocks from X position had a million different ways to break.
Ark/Palworld is a slightly easier version of the problem since there's fewer nav updates (building, not block), it's a sparser field to work with, and you can more easily register just the relevant ones, but it's still something where I've got a huge amount of patience for people who try it and get a slightly-buggy result.
(Though, uh, too buggy can be a problem: Ark's solution still occasionally resulted in disappearing critters ten years in, bad enough that one of the most popular mods was a hitching post, and that was only Terraria-level wandering.)
I think there are a lot of defenses, and far more possibility: Palworld is, after all, just recently into early access, and some few games have done amazing things with the model, and just by allowing private servers and a modding api they've done a lot better than some of the more obnoxious Steam shovelware (and just by releasing something playable, they're better than the typical kickstarter scam). I'll probably try the game eventually once my free time has been consumed less by work and stem outreach stuff.
But I think there's something more than Arjin's proposed causes, than loser-hate or Nintendo-loyalty (or immune reaction to AIgen proponents).
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