"Prices almost always come down. Competition is NOT the only reason prices come down, however."
Competition is the only reason why prices come down. There are plenty of parts that don't change in price because there isn't any competition. Companies aren't altruistic, they cut prices when they have to and don't when they can avoid it. If they can get away with it, the will even raise prices like Intel tried to do with flash a couple of years ago.
you're wrong, smaller geometries in the absence of competition would only result in greater margins not lower prices, Intel would have a field day if AMD did not exist as it has in the past in market segments where AMD did not have a viable competing alternative.
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