Games

Not all monopolies are created equal. We're talking about IP protections, not general monopolies, meaning these are new products, not some existing necessity. IP law on its own can't kill existing products.

An author having exclusive rights to a work doesn't prevent other authors from making their own works. A pharmaceutical company having exclusive rights to a medication doesn't prevent other pharmaceutical companies from making competing medications. Likewise for video games and whatnot.

The problems with Palworld have little to do with IP law as a concept but with how broad the protection of patents is. IMO, video game mechanics shouldn't be patentable, and companies should be limited to copyright protections for their IP. But IP protection is still important as a concept so creators don't get screwed and customers don't get defrauded.

You can also legislate mandatory R&D in budgets for large corporations

Yeah, that's not going to be abused/scare away companies.

Its largely a major reason why the American Military has historically benefited from such significant technological advancements for nearly a century now.

It's also why the US pays an obscene amount for its military. Defense contractors absolutely fleece the government because they are generally not allowed to contract with other governments, so they expect a higher profit from their one contracted buyer.