> […] in practice exactly one person will buy the game that cost millions to produce, put it up on a website for free, and then the studio will say "well, never doing that again".

This is exactly what has been happening for years, only illegally. If it became legal, I imagine far less people would end up buying the game, though probably still more than just one.

But again, games are more than just software, so the four freedoms do not enable this.