I'd like to agree with you, but the issue then becomes this smaller company is competing with a much larger company, which then has a larger marketing budget. The smaller company's offering becomes just another set of features the larger company offers.
It's not fair because the larger company continues to get VC funding which allows it to subsidize features or even give them away for free. Remember, all these companies are effectively racing to become monopolies and part of that process is "price dumping" to kill of smaller competitors. Again, this sucks, but those are the incentives VCs provides and companies have to oblige or get swallowed up by bigger fish.
It's not fair because the larger company continues to get VC funding which allows it to subsidize features or even give them away for free. Remember, all these companies are effectively racing to become monopolies and part of that process is "price dumping" to kill of smaller competitors. Again, this sucks, but those are the incentives VCs provides and companies have to oblige or get swallowed up by bigger fish.