> The games take just as much time and effort to develop. ... does not make them any less valuable!
I'm not sure the amount of effort is the best way to determine something's value.
If you spent a million hours making me a house out of pizza, I'm probably still not going to move in. If you dig a thousand feet underground to bring me a normal igneous rock, I'm not going to wear it like jewelry. The price for these things, and I'd argue the value of these things, would be very low.
Part of what makes your efforts valuable is whether or not you are filling a pressing need.
If we were in a tribal society surrounded by coconut palm trees, and you start walking to faraway villages to bring back their identical coconuts, you're not bringing back something of value. You're really just wasting everyone's time. If you learn medicine, or go fetch water, that's a little more heroic.
Today we live in an era where we're surrounded by an abundance of entertainment. I could spend the rest of my life and not make a dent in Project Gutenberg. And I don't think we can safely dismiss any of those experiences as valueless. I'm reluctant to believe that every new iPhone game is a far better experience than reading anything by, say, Lewis Carroll.
Maybe falling prices isn't a symptom of an ungrateful audience or a "race to the bottom," but an honest signal from the village of humanity that we've kind of got this human need for distraction covered.