I just found it highly unlikely that Nvidia would change its ways due to this, and I don't really see how we're being "squeezed". Nvidia are delivering amazing products (as are AMD), and it is not going to be any cheaper this way.
Building this kind of hardware is not something a hacker can do over the weekend.
The squeeze is mostly within the segmentation of VRAM between products, it's basically a commodity and this week the spot price for 8GB of GDDR6 has varied from $1.30 to $3.50 [1].
Yet to get a card with 8GB more than one with comparable logical performance, you'd be looking at hundreds (or thousands in the case of "machine learning" cards) of dollars.
Nvidia is charging what they are entirely because there is no or very little competition. There isn't much else to it, if AMD/Intel caught up Nvidia would suddenly start selling their GPUs for way less...
Nobody is forcing you to buy GPUs.
Your logic is flawed in the sense that enough people could also simply write alternatives to Torch, which, by the way, is already open source.