The only thing I see wrong with your argument is that treating a vendor in an unethical way ends up being counterproductive, as does "ripping off" of a customer.  As a business owner, I may be able to get away with that for a while, but it's not in my own best financial interest in the long run.

Word travels fast these days, thanks in large part to 'sites like SOT and other electronic media.  As long as the "little guy" holds fast to his principles and refuses to compromise, that "dime a dozen" mentality that you and Rachel speak of will not serve the VM's well for very long.

Regards,
Scott