1. If a miner was more profitable than the price payed, wouldn't the mining companies use them instead of selling them?

2. If a cloud miner was more profitable than the price payed, wouldn't the mining companies use them instead of renting them?

3. Isn't it less risky to buy the coins upfront and not compete with the rising hashrate and diminishing returns?

In my opinion, there is an influx of math-deficient kids and young adults spending money to buy miners in hopes of getting rich. This causes an influx of miners and less buying pressure on the actual market. In time, this influx should slow down as the general group will realize the futility of buying miners, and thus the price will begin to rise again.

Am I missing something as to the advantage of mining?