I call this the "Karl Marx Fallacy." It assumes a static basket of human wants and needs over time, leading to the conclusion competition will inevitably erode all profit and lead to market collapse.

It ignores the reality of humans having memetic emotions, habits, affinities, differentiated use cases & social signaling needs, and the desire to always want to do more...constantly adding more layers of abstraction in fractal ways that evolve into bigger or more niche things.

5 years ago humans didn't know a desire for gaming GPUs would turn into AI. Now it's the fastest growing market.

Ask yourself: how did Google Search continue to make money after Bing's search results started benchmarking just as good?

Or: how did Apple continue to make money after Android opened up the market to commoditize mobile computing?

Etc. Etc.