Normally the more competition leads to better prices, many have complained about premium charges/commision rates/outages on Betfair.
If for example the Ladbrokes betting exchange offered serious competition and lets say for example Ladbrokes had an opening 1 month offer of NO Commission, NO Premium Charge, i would certainly join.
I agree with you.
I believe this will force Betfair to stay competitive, which is a good thing.
But I doubt they can do anything about Betfair's total dominance over the exchange market.
They'd have to invest many millions to attempt that and it might just not be feasible.