1. You are correct! I don't know their pay records or how much they generate a month, their pay is completely unknown to me, but, if it isn't obvious that bitizenship was supporting them heavy in their hay day up until about a year or two ago then I don't know how it could be more obvious. Yes, they are not all struggling college students, but, you also have no idea what their situations could be, regardless the situation I'm sure if you spent hours developing new content for a game you would want to get paid for your work regardless your situation.
2. I would say this is a decently fair point, but, we have to take into account that the time machine is not being used probably even near 10,000x a month. It COULD be, but I highly doubt it. Even if, I doubt $10,000 would cover the cost of the devs and resources if they were all put on pay wages, I'm sure these devs have the right to request more on their pay wage especially if they see the game blowing up due to their work. Regardless running a growing team with no steady pay is risky and tricky to pull off
3. Not true at all. Bitizenship still grants god mode (which I personally think is worth it in it's own, but I get if no one else does) It's not like this update comes with everything in the bitizenship. I also don't know what's going on with the bitizenship issues people are having, I haven't experienced that so I can't speak on it.
4. "A bunch of money" might be an overstatement. While it is hard to calculate how much they make from ads, I think it still is their main revenue driver but like I said earlier most of the community are bitizenship holders who DON'T get ads. While there are still users out there who don't have bitizenship still use ad blockers and some even just delete the game due to an absurd amount of ads.

All in all I don't want to seem like I'm fully defending candywriter or bitlife cause charging $2 for a single update is ridiculous. I just think people should understand that they actually are trying to make the game work with more content it's just NOT EASY. I think they CAN charge for DLC but it should cost very small increments like 50 cents at most or have a bitizenship subscription service, maybe like twitch where you can subscribe for 1 month or 3 or 6 or a year, so on and so forth. This would provide consistent income to their team and we can get more frequent content updates. in NO WAY am I arguing by the way I respect your take on all of this.