Genshin (and many other gacha) are actually more like the second option since they feature a mechanic known as pity where after a certain number of pulls the chance to get the item goes up to 100%. In Genshin that is at 180 pulls but because they also ramp up the chance to a featured item as you pull more realistically it is more likely to happen at around 150-160 pulls. This is still crazy (especially if you buy all of these pulls with money because the dollar to pull exchange rate is absolutely ludicrous) but it does mean that an F2P player can guarantee that they will get a character they want after a couple of months of saving.