I think you may have just re-discovered Disruptive Innovation (sometimes also called Disruption Theory): incumbents over-serve their customers by adding lots of features, complexity, and cost. Upstarts can attack them by focusing on only a few core features and/or low price. The incumbents can't respond without annoying their existing customers who have grown accustomed to all the features the incumbent provides.
https://hbr.org/2015/12/what-is-disruptive-innovation