"The complexity of the system increases because of it and the bar of entry for new competitors ratchets up."

Again, technological innovation and evolving markets make this true only in immutable markets. Paradigmatic evolutions often - and more often of late - sometimes simplify rather than increase complexity of a niche, and enable upstarts to innovate into a market.

Much like biological evolution, species of products arise from hybrids of extant varieties, and then target specific metrics that make them a better fit to conditions, until a new product arises that simply replaces the former best product. The fossil record reveals this just as well as the history of technology.

Regarding abstract competition and corruption (which is an endemic feature of markets obscured for competitive advantage and of which understanding is far too poorly disseminated) I note that decentralizing means of production are simply obviating the problem - as novel and disruptive technology is wont to do. I expect that the advantage of having control of every aspect of products by consumers competent to produce them themselves is relegating most economic theory to obsolescence, along with collectivism and centralization in every form. This is not to say that cooperation is obsolete, merely forced compliance with institutional authority.