Depends how you look at it. You appear to be under the impression that Zwift, or any other business really, cares about you.
A business doesn't exist to please you, it exists to make money. From that perspective, if 'gamification' such as upgrades, streaks, etc. attracts/retains more users than balancing racing, than it's perfectly reasonable for a private enterprise to invest in it. Isn't it?
May be very cynical of me, but you know... It's not like they love you
That, and let's be honest: There is no solution for balancing racing - it's just a matter of which group of people gets shafted. No way to make everyone happy makes for another good reason to work on other stuff.