> Your software product generally has a competitor, and they're busy trying to make theirs better than yours
Unless you are selling a commodity. There is a good case to be made that what Dropbox sells is a commodity.
> That's capitalism failing.
That's government failing.
1. You can't dig the moats necessary to establish a monopoly without regulation to support it.
2. If/when the government screws up, the onus is on it to fix the problem before the situation gets out of hand.