Jack can't deal with these guys, he needs to grow some balls and argue with them. He should've just told them "sorry but this is a pinball machine, it's all about a steel ball being bashed everywhere, we're not gonna risk bankruptcy for the preservation of Smaug's sanctity, he's not Jesus, we need to be a competitive pinball company".

But he instead rolled over and played dead for them.

There might be a good reason why they can't. When everyone was complaining about the cabinet art and demanded the fictional Aurich-Smaug edition, Jack was present in the thread and yet he did not even mention this very real Smaug edition we see now, and this would have calmed the nay-sayers if he did. Maybe he felt that he would need permission from the licensor before saying anything to us, he can't assure anyone of anything because of the licensor's fickle nature.