Arc, Happy Thanksgiving and thanks for taking the time for the lengthy explanation. Of course it makes sense until you have to apply it to the bankroll of the individual player. It still makes sense for an individual to think of video poker that way -- but their own bankroll may not allow them to play that way.
You could make the argument that gamblers should not play VP above their bankroll, and that would be valid.
But truly we are back to the question of "who can live by the math, the player or the casino?"
Certainly, the casino can afford to live "by the math." The players unless they have a lot of disposable income (relative to the denomination they play) can not.
Remember in 2011... I had a royal flush drought of more than 180,000 hands. The "math guys" called that normal. Normal? Are you kidding me? That was horrendous. Maybe on a "math basis" it was normal but it was horrific on my bank account which is why much of my play this year is at lower denominations, and even though I have had 8 royals so far this year (or is it 9?), only 2 were at $5 games and the rest at $1 and $2 games.
I think the point is this: the "math" makes sense on a theoretical level. But players want something more "reliable" than just "what should happen." So the challenge is to come up with a way of playing the game to maximize wins and limit losses. That might fly in the face of your "math theory" but we're talking dollars and cents here.
I hate to start a new argument, but what "win goals" and "loss limits" do is try to smooth out the fluctuations that the "math theory" says you must accept. And players would use win goals and loss limits because they don't want to be forced to accept the fluctuations that the math would say are inevitable.