Its not a failure to compete, its a refusal to compete. More important to them than profits, is control. The moment they start building out, advancing, and actually competing, they risk losing control over the product. They are getting exactly what they want out of thier position.
And, we are not "paralyzed with terror," were in an induced coma. Bureaucracy, patent fiefdoms, design copyrights, licensing, permitting, everything is about keeping production under strict control, and making it impossible to compete. To keep us from rolling our own products, competing, and escaping...control.
