Ah I see what you're saying. Well I guess I see it like horse salesman when the Model T Ford was released. This is the natural evolution of the markets.

Small bid/ask spreads tend to be good for the overall markets, perhaps not for the market makers. However, the exchanges make up for this fact (that the markets are more efficient now than they ever have been in history) by offering rebates for market makers and massive rebates for designated market makers.

Fundamentally, capitalism is somewhat darwinistic. Adapt or die.