Oh yeah great writeup, I saw the Prospectors Game on Wax a couple of months back, I also didn't know it was built on EOS. The game looked really nice like the Wild west kinda game and engaging in odd jobs seemed cool but I wasn't even able to start playing properly - A weird error prevented me from playing and I didn't bother to troubleshoot it. It had that tiring feeling somehow.

I think there is a lesson here for game developers about whether in-game actions should be executed and recorded on-chain or whether it’s just better to have in-game assets on-chain.

Isn't that's the core idea of blockchain games? For all transactions to be recorded on-chain. There are games working it out splendidly - and like you pointed out, this could be a result of EOS somewhere!