Not so. In your theoretical world the market dynamics would simply be different. Companies in the real world can choose to make products vastly more reliable and long lasting and not go belly up (as you put it). Indeed, they used to. Now they just prefer a more subscription-based model (where consumers buy a new one every so often) because it cash flows easier, and it's easier to manipulate the customers perception of true cost. So "belly up" weakens your argument. You'd be much closer in simply saying companies might make less. Though, I'm not sure that's true either. My dad used to own and operate a company selling VERY high-end, long-lasting seat covers for cars and trucks. He charged A LOT, and had a three month waiting list.

So...

Low durability = low price = many sold High durability = high price = fewer sold

But mathematically you could still make the same under either approach.