I think they need that many games for organizations to break even. I think most teams lose money if they don't make the playoffs in a given season. They don't have the lucrative TV deals that football has. Of course, there's an argument that demand would go up if they played less, yada yada yada...but this is what they're comfortable with.
might rethink the TV theory. they are more market specific because each team can sell their local tv rights, and the league only sells a certain number of games to fox and espn. that's a ton of programming for local/regional sports networks that carry the games (4-5 hours of programming per day almost everyday for about 6 months), and the most recent deals have been huge and why you are suddenly seeing more and more "small" market and non-traditional franchises splurging to lock up young players before they hit the market. and fwiw, while ratings of the playoffs and all star game and **** might be down, attendance is up across the league.
plus, unlike football where the best team (or at least the better teams) can often be determined over 16 games because so much prep goes into each game, baseball has the ebbs and flows and part of it is staying mentally focused in august and sept and having a full rotation (reducing games means you could probably shorten rotations) that contributes instead of relying on 3 studs and not worrying about the 4th and 5th SPs or a deep bench or bullpen.
of course each game isn't do or die, and losing a random tuesday night game to a crappy team in may isn't likely ruining your season, but you follow your team or just the league in general and kinda get a feel for who is hot, who is slumping, etc. and over the course of 162 games you really find our what kind of team you have. baseball is supposed to be a relaxing season for the most part. of course the end can get crazy and intense, but you can spend the summer going to games, chilling out with friends, drinking beer, cheering for your team, and if they lose, it's not the end of the world.
finally you have to factor in all records, not just seasonal records, but careers records. guys would lose hundreds of games over a career.