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Once economics become separated from ethics, it's a clear sign of the beginnings of a general social decay. I don't know that it's been millennia, if by that you mean several thousands of years. My take is that once we got away from the guilds, and local production, where a more honest trade was the norm, things could be said to have deteriorated, ethically. But that's just my view.You can moralise about it as much as you like, but there are customers that require products and if you don't sell them, someone else will, and you will lose other business besides. And it goes down the chain. It's been like this for millennia.
I think you are right about how this stuff 'goes down the chain', and that if X doesn't do it, Y certainly will.
I would question your notion about customer 'requiring' certain products, to the exclusion of others. I think a more ethical dealer could sell a twenty dollar power cord, convince him that it will do exactly the same thing as the more expensive one, and then both dealer and customer would feel much better about the deal. The first knowing he took care of his customer in an honest manner, and the latter knowing he wasn't sold a bill of goods.
BTW, whenever I've bought electrical gear, I always got a power cord with the device. So one really has to go out of their way to consume these 'special' products. They really have to be 'convinced' of their benefit. No one, on their own, has ever woken up and said to themselves, "You know, my stereo doesn't sound as good as I think it could. I bet an expensive power cord would help it out!"