I think you're wrong. But not because you're illogical. On the contrary I think you're thinking rationally if you assume businesses are running to make better products. If you do. You're right.

These companies are not running to make better products than their competitors. They are running to monopolize their industry to a degree that gives them enough power to sell absolute garbage.

Look no further than the gaming industry. This is the exact type of garbage we are seeing from other industries now.

They are not interested in making better products. They are interested in making profits. And if the entire market is held together by 2-3 major players all replacing workers with AI slop they will have no reason to change. They will all do it together.

No amount of "indie" projects will ever threaten their market domination.

This is then future that will happen. Don't expect "markets" to save us from this. The myth of "free markets" is how we got here in the first place.