He didn't misunderstand, you did.

Some players want the resin system to be abolished altogether so they can grind for eternity

So? It's a PvE game. If they enjoy it better this way, who the fuck are you to tell them otherwise?

drop rates would also be lowered

That's just an assumption on your part to suit your argument. The whole point of abolishing the resin system is to allow free grinding, so naturally the people in favor of this would not be in favor of reduced rewards.

This is understandable from a developer's point of view.

And at the same time, you could choose an alternative whereby players are still willing to invest money in the game - e.g. more highly valued characters and their constellations, weapons, skins - while loosing the restrictions on the parts affecting both F2P and whale players.

It is not black and white.

But now, they're complaining that they're not getting enough materials per day

And they're right.

even though the fact is the thing that's actually limited is not the resin, but the rate of progression per day.

That rate of progression is created by the resin system.

...

Dude.