You're certainly not entirely wrong and on surface I agree with you. And there are certainly degrees in which this is happening.

For most artists it doesnt happen all at once, its usually ramped in parallel with their success. They erode the artists personal identity over time to shape it to their vision. Most the time it isn't someone embracing their sexuality in the way they deem fit. Its almost always forced on them in the way deemed to make most $.

And to your point, yes this video is taking the extreme cases. But it happens in all shades of grey, pretty much throughout the industry but this toxic culture stems from the majors. The video may have an alarmist taste to it but the evil is very real right now.