It's an interesting argument, but it'll be a tough sell to MLB. They could care less about whether The Show is better than 2K8 or where MVP might rank if it came back.
From their perspective, all that might matter is whether one does a better job than another of creating new fans - and then estimating what sort of revenue those new fans would create. Everything you say is plausible, but it's damn near impossible to measure. Exclusive licensing fees, on the other hand, are known and certain. From a business perspective, as opposed to a gaming one, it doesn't seem like a difficult decision to me.
Other than that, I agree with everything
