Part of that may be a misunderstanding of game theory. Game theory is about assessing what your possible strategies are, what everybody else's possible strateg

Part of that may be a misunderstanding of game theory. Game theory is about assessing what your possible strategies are, what everybody else's possible strategies are, and what the outcomes could be. Where game theory completely falls down is when one tries to use it for calculating specifically what to do. Even under perfect rationality assumptions, the calculations usually don't go well. What's worse, if you perturb that assumption even slightly, the answers may change significantly. (So yes, the rational behavior part of your critique is indeed a sound one.)