Not long ago, you might have said "freon is used everywhere" or "leaded gasoline is used everywhere" or "asbestos is used everywhere" and as long as there is demand, supply will be there too. But people didn't just give up, they fought, and won.
Edit: all three replies (as of right now) seem to be saying the same thing: that what I'm proposing doesn't work with market forces, and requires government regulation. Which is exactly what I'm saying: just because capitalism dictates that this continues doesn't mean we have to put up with it, we can ban palm oil or at least ban palm oil farmed in a harmful manner, and fix the problem.