This doesn't address the fact that five drawing hands beats one over x hands though. If you play 10,000, or 1,000,000 hands against five no foldem drawing hands, you will lose.
EDIT: I understand obviously it must be possible to beat as some people evidently do profit somehow on microstakes, but in theory with an environment full of calling stations, the calling stations definitely reduce the profitability because of the absolute luck element
Its true, that we win less often in multiway pots, but in return we win larger pots. If 5 people put money into the pot, and you win 25% of the time, that creates a significant profit already. You just need to learn to play postflop well, which is why, "bad regs" often struggle with playing in loose games. By "bad reg" I mean someone, who has started to learn
poker strategy, but they have not yet put all the pieces of the puzzle together. So "bad regs" are somewhere between a fish and a good reg. For instance they might have learned to raise preflop and C-bet the flop. But they have not learned when NOT to C-bet the flop, and they are trying to much to win every hand instead of focusing on winning chips.
Another thing, which "bad regs" struggle with in loose games, is the increased variance. In cash games you will get stacked more often, and in tournaments you will have more early bustouts, because the pots are bigger, and the opponents get to showdown more often. And this can be tilting, especially when you lose to someone, who played very poorly. Because then there is this extra element of pride or ego, where you feel, you deserve even more to win, because the opponent is so much worse.
One of the differences between good and bad regs is, that good regs have learned to come to piece with the fact, that fish need to get lucky sometimes, or else there would not even be a game in the long run. So good regs will never make comments in the chat about, how other people played, and they will especially never berate the fish. Whereas "bad regs" are the once, who go crazy in the chat and start to act like a poker teacher, when someone puts a bad beat on them.