Very little.

X to doubt.

They aren't. I've never met or heard of a single individual who either only backs the favourite, or backs multiple selections in each race based solely on price.

In conclusion: you're as clueless as the OP. Most random punters will have a look at form, names, trainers or jockeys. There is no-one who is purely looking at the prices like this data does.

No one employs these strategies. This is a naive analysis.

Plenty of sharp money makes profit from gambling. Tony Bloom is a notable, high-profile figure who made all his money from gambling, and still generates large sums from it. He has been so successful in mathematically calculating value bets he is now the owner of Brighton football club, and the 'Asian handicap' exists because of him.

You have a very basic understanding of gambling and are coming at it from a biased angle that presumes to treat everyone like children that shouldn't be left to the consequences of their own bad decisions.

What are you on about? Bookmakers have every incentive to restrict winning players and they do, rather quickly.

Incorrect. Winning (value oriented) players get restricted very quickly, and recent "responsible gambling checks" are used to avoid making payouts.