> In the short-run efficiency immediately benefits the established players, but in the long-run it benefits, more or less literally, everybody except them.

The problem is, in a world running on next-quarter financials and bonuses, long-run disadvantages don't matter as long as the persons in charge of decisions can fuck off with golden parachutes before the house of cards crashes down.

> Competition increases, margins decrease, baseline minimal standard of quality for success increases.

Or everyone tacitly agrees on a new low standard of product, maybe adds in regulatory capture to prevent competition from rising, and even if you want, you won't be able to find an alternative. Enshittification galore.