premium hats and capes has to be one of the stupidest concepts in the history of gaming.
Apparently you are unaware of the runaway success of the Mann Co Store in TF2, which has done so well that TF2 is now Free-to-Play. Hats are among the variety of items that are sold on the Mann Co Store.
Public opinion is not always synonymous with right/moral/good/whatever.
So from a subjective point of view, I would agree that it is a stupid point of view. And I actually think that a poll of gamers, not just TF2 players, would give you the same answer.
However from a business point of view, certainly not a stupid view, since (as you said) it does actually work.
Depends what you're trying to judge, the concept for gamers or the concept as a business plan.
Apparently you are unaware of the runaway success of the Mann Co Store in TF2, which has done so well that TF2 is now Free-to-Play. Hats are among the variety of items that are sold on the Mann Co Store.