I disagree, not because I play casual games, but because I think mainstream games became better because of them. Even the simplest smartphone minigame has been an exercise in how to better approach a bigger, more varied audience. Given that videogames have been forbidding for far too long, so I think it's encouraging that a lot of new people are pouring in. And yes, Fruit-ninja or whatever it's called is an "addictive diversion", but the fact that it can be successful has opened a lot of doors for small, independent, or F2P projects.
As for "F2P isn't the future" - I think Sony is just scared shitless that no one thing is going to be the future, and they won't be able to rake in all the dough. As for F2P, FireFall, Blacklight, Tribes Ascend, and Planetside are F2P shooters with the same, if not better, looks, features and support of $60 games. I don't see how another CoD can even be profitable with this many free competitors.