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I'm not sure what kind of role you had in the industry, but I'm not sure what you're saying is entirely accurate... although there are some bits in there I agree with:
Accurate. And that's ok. A programmer whose job it is to optimize the physics of bullet ricochet against thirteen different kind of materials can go really deep on that, and they don't need to (or have time to) zoom out and care about the entire game. That's fine. They have a job that is often highly specialized, has been given to them by production and they have to deliver on time and at quality. Why is that a problem? You use the corrolary of film, and nobody cares if the gaffer understands the subtext of the Act 3 arc.... it's not their job.
Which one? A game designer lacking in gaming experience likely wouldn't get hired anywhere that has an ounce of standard. A UX designer without gaming experience might get hired, but UX is about communication, intuition and flow. A UX designer who worked on surgical software tooling could still be an effective member of a game dev team if their fundamentals are strong.
Again, which one? Investors probably don't know much about the specifics of gameplay or game design because they don't need to, they need to understand ROI, a studio's ability to deliver on time, at budget and quality, and the likely total obtainable market based on genre and fit.
Publishers -- depending on whether you are talking about mobile or console/box model -- will usually be intimately familiar with how to position a product for market, what KPIs (key performance indicators) to target and how to optimize within the available budget.
This has happened. I'm not sure it's an actual trend. There are lots of misses in the game industry. Making successful products is hard -- it's hard at the indie level, it's hard at the AAA level. I would estimate there are a thousand failed Indies for every one you call out as 'kicking a big studio's butt.' Lots of failed AAA titles too. It's just how it goes.
The same, by the way, is true of film, TV, books and music. A lot of misses go into making a hit. Cultural products are hard to make, and nobody has the formula for success. Most teams try, fail, then try again. Sometimes, they succeed.