If you want to outbid competitors, by all means go for it. My complaint is with people who charge next to nothing and produce poor quality work - when you have a lot of these clients start thinking that this is the norm. For someone who makes a living doing this type of work and relies on fair pay, this kind of mentality will have a negative effect in the long run.
My plea in the post was to simply charge what's fair to you and the client, but I guess it does seem a little like price fixing. I'm not sure how to convey my thoughts/feelings otherwise though. I hope that made some kind of sense. (apologies for the poor choice of wording on my part)