You say it like it is bad, but isn't it actually a good thing that a company chooses the profitable route over an unsustainable model that requires infinite growth and leads to constant employee turnover?
Practice of running companies at a loss and only being kept afloat because of VC money seems to make everything worse. Company that is losing money while those at top rakes money seems to be what makes competitors harder as it requires huge outside capital to survive long enough for over a decade losing money.