The fatal flaw with the current business model.

The problem is that most "RPG"s aren't actual Role Playing Games; they just contain some of the aspects of role-playing games, namely: character levels and stats.

Those aren't technically aspects of role playing games, just character development schemes that many genres of game use. An RPG is exactly what it's name says - a game where you take on the role of a character or characters during their story. Leveling is a mechanic and nothing to do with the actual game itself, which generally revolves more around the story and characters than anything else.

Final Fantasy is a good example. Dozens of different mechanics for progressing characters. More focus on the story than anything.