Yes. There are executives are ubisoft who think like this and push it as a mandate across their console releases, even though they have the ability to go 60+ fps. They are truly out of touch with reality.
Not that you haven't heard it a million times from me, but I strongly endorse the avenue of approach being attacking Team Ninja directly. Pressuring them into releasing a stronger game resulted in DOA 5, which yielded the explosion of growth we saw in a post DOA 4 world. That -can- happen again.