the problem with SEO in its current state

I just was reading the post about the future of SEO and something popped in my head worth discussing.

The system now 'works' but its far from being the best...

I only want to mention one issue and see what happens.

Google has x results on page one, including 7-pack and PPC. If there are lets say 10 companies fighting for a local search, and all 10 have done SEO work, it doesn't really matter because only a select few will get a majority of the traffic. Hence the problem:

No matter what happens only a select few will get a majority of the traffic. If there are 1000 SEO firms, only a few will be able to get business through any means in Google at anytime. This means that a large majority of the world, in any industry will not be able to benefit from SEO no matter what.

Traditional methods spread everything out. You have hundreds of options all get read by different people. But with everything converging to the internet and specifically Google, you limit your sales pipe to whoever is lucky enough to be on the first page of google.

If I worked really hard to develop the best marriage help material ever, does it even matter? the competition by companies driven by excellent SEO firms makes it nearly impossible for me to get traffic without focusing primarily on 'alternative' efforts like media buying etc...

Does this bother you? It definitely bothers me. As time goes by every single one of you will be ranking more and more pages, eventually there will be a majority of nearly all searched terms that have been worked on tremendously, and they will basically make up 98% of business. Yes I know there are other sites that do ads/banners/etc.. etc... But I'm just saying... Things must change, sooner than later.

Think about it and i'm interested to hear your thoughts...