An idealised race to the bottom which just eats into excessive profits would be great. But typically companies want to maintain their margins, so it's the staff that get squeezed, or the service, or the ethics, or all of the above.

And it often ends up warping the market so that choice is removed, a premium economy does not always spring up. To take your TV example, modern mainstream TVs now bundle spyware/malware/adware. Yes the hardware is better than it was, but it is being invisibly subsidised by the reduction in ethical standards. And now none of the major players can now afford not to do it if they want to compete. Is this exactly what people wanted? The market no longer offers allows them to choose and they aren't being fully informed about the implications.

It's really a failing of marketing - being unable to continue to justify the price of a product (whether it was warranted or not).