This is a tempting (and not completely false) shortcut, but often you don’t compete for customer’s wallets.
For many companies, a lower price is often not the reason they switch.
They stay because of the time invested in the current solution, the integration in their pipelines etc.
If you need $1M/y in subscriptions to build your software, you'll be outcompete by solos who needs $60k/y and don't care about the 100% churn of a one-time fee.
This is simply market optimization when the marginal cost of producing the good falls.