While you do make great points, you have to also understand just as with everything else, design has evolved onto a more mainstream approachability, not in the sense that just "anyone with a mac and photoshop calls him/her self a designer"
, but in the sense that even the most tech/web illiterate person has now the tools to be self sufficient.
In this sense you dont have to see it as if you're selling yourself or your designs for cheap, but basically the anchor to monetize from major projects and maintenance for a longer term.
For example, a few months back, there was a customer who had started his own business and managed to launch himself on the web using the 1&1 platform. Yes, it was very affordable compared to what a custom solutions would've cost him from a pro designer, but when it came down to tailoring the platform for his specific needs, is when he then realized and basically came to terms with paying for a pro designer. (custom tracking landing pages, php modules, cms, etc...) that it was not as cheap as he originally thought.
The high end design is still there, and those who can deliver are making the good money, the lower end unfortunately are still trying to undermine the previous, but is always the customer then one who realizes the difference on the lung run.