Yup, it’s easier for a user to justify a small purchase and lose track of how much they’re spending and that’s exactly why they do it.
It’s the same with in-app currency, they sell you 100 coins or gems or whatever for $2.99, then charge you 75 for the shortcut to the progression required upgrade. You don’t want to let a quarter of your money go to waste, so you’re more tempted to put another $2.99 down to utilize it and buy the next upgrade. Cue the leveling treadmill.
It’s a sort of weaponization of the study of human behavior IMO.
I switched in 2021 and I thought the same then.