For how much the budgets on Western AAA boggle the mind, the fact Pokemon literally makes Fuck You money on every release and Game Freak/Nintendo seems to just reduce the budget on the subsequent releases is baffling for a whole lot of different reasons.
Yeah, they've been coasting for over a decade at this point, but you'd think they'd at least try and reinvest into the things that made them a merchandising empire in the first place. Do the executives at Game Freak think they can still make games for what feels like the price of a GBA game's development (adjusted for inflation, obviously)
GameFreak are a bunch of incompetent morons, if that wasn't obvious. They got handed the keys to the kingdom and they weren't ready for it, few are in the end. It should be pointed out that this is, indeed, all Gamefreak. Nintendo and TPC don't call the shots as much as people think, Gamefreak can easily tell them to fuck off and override their decision if need be. This means that every single fuck up, every single retarded decision, every single bit of incompetence is on them. Nobody at the studio was bullied by big, bad Nintendo or TPC to release broken, half finished games that are 20 years behind the times technologically.
The leaks show that Nintendo tried to help them by outsourcing some of the work to Square Enix, to help Gamefreak with the load. In return, Gamefreak throw a meltie and had a rant in their internal docs about "keeping their independence". You can't have it both ways, you either make smaller games or you get some help making bigger and more ambitious ones, it's clear Gamefreak does not have the talent to be a top dog studio despite how much money their games make. Perfect example of their incompetence would be SV DLC, which supposedly cost just as much as development of PLA Arceus and sold only 1/4th as much as it was projected too. Absolute failure by any stretch, especially since that content was no doubt cut from the base game, not only are they participating in the cancerous DLC/GaaS space but they aren't even any good at it either.
You're right in that they're going to coast on mediocrity for years to come, sadly. Too many retards buying their games still, despite being the dregs of gaming everyone makes fun of, IP is never going to get old, and there is a ton more to the franchise than just the games(TCG, Anime ect.). Pokemon is here to stay, and the games don't need to be good, hell they don't even need to be functional.
I've seen PS2 games with better water. That's really sad.
I've seen Gamecube games with better animations. Namely, the two GC Pokemon titles.