Ask a car shop how screwed up joints can become if a home repairer constantly squeezes in WD-40 instead of getting them properly lubed.
You don't seem to be distinguishing between the various applications. There are things that need heavy grease and there are things that don't. Anything ruined by WD-40 is a result of using it on something that
needs a heavy grease. WD-40 will get in there, clean out any existing grease and leave inadequate lubrication behind. I wouldn't shoot WD-40 into a bottom bracket on a bicycle either; it would be torn up in short order.
Now, I just took one of these Nintendo joysticks apart and I have long known full well their application. They do not need to bear any significant load and they do not move at any significant speed. They do
not need heavy grease. Like I mentioned earlier, they are mechanically
identical to a full length recoil spring guide rod system in a pistol, with the addition of that insignificant-load bearing main bearing. We know that WD-40 does
not ruin guns; or else they would be in for some major lawsuits since they recommend its use for guns right on the side of the can; and the training facilities, and gunsmiths who use it exclusively would think twice if all of their guns were being ruined.
Why go for the overkill? To use an extreme example to illustrate the difference in "slickness"; would you pack an old wind-up wrist watch full of bearing grease?