This addresses the crux of the issue as I see it. We will never have nice things if this cycle is allowed to repeat endlessly. I hope that people will eventually wisen up to these tactics but realistically I think regulation would be required if we wanted to stop it. I see parallels to classic price dumping but I don't know how applicable those laws are in the digital world.
Critical mass is important so creating something that captures market share and then turns to shit actively harms the market.