The cost of innovation is socialized, paid for with tax dollars, and mostly done in universities and the army. An Iphone is chuck-full of technologies invented in universities and the army, right up to that magnificent touch-screen. Really, you've got it all wrong, as do most people unfortunately. Most people do really believe in that story about the best baker out-competing lesser bakers. The only problem is that the best baker is just the one who innovates for cost-efficiency and marketing, not necessarily the one that bakes the best bread.

This is definitely a fair argument. I can't say you have completely convinced me, but you have given me a lot to think about. Thanks a lot.