You said: "For these guys, the focus wasn't necessarily direct financial profit, but rather the technical challenge and a certain philosophy that computer knowledge should be accessible to everyone." Not exactly! I certainly enjoyed the technical challenge, but we at THG were in it to be first. We spent lots of money on expedited shipping and other "tricks" to get the games first so that we could RELEASE them first and "win" for that particular game. We were SOLELY about the competition. I was a co-founder of THG and the original cracker in the group and I played VERY VERY few games that we released. I would play it only long enough to make sure the crack worked, or long enough to develop a trainer, but that was usually it. I didn't keep them even. Once a game was done, cracked, uploaded to Candyland BBS, I would erase it from my hard disk.
In the Manuals and Tables section you said: "Crackers solved this by distributing simple text files containing all possible answers.". No, crackers solved this by modifying the code to believe that a correct answer had been entered. And as was the case with THG, you never knew the game was asking you for a word or code. We removed ALL of that. The same with bad sector checks, or dongles. IIRC there were no PC games that used dongles. Those were usually used on applications like 3D Studio, or other expensive packages as the dongles were too expensive to be included with a $30 game.