If they have a better product, so be it. But I'm not convinced that more engineers and more R&D necessarily lead to that, nor am I convinced that smaller, more niche products are always choked out. If that were the case, we'd only have huge companies and a bunch of choked out entrepreneurs. Rather, a bunch of us out here with small companies are doing just fine. Definitely not a give up situation like "we just can't compete". That mentality gives rise to nuclear options with unintended consequences.
This is very true. I have been a paying customer of Fastmail for many years, and in my opinion, they are the best in the industry and very small to boot.
OpenBSD is yet another example of a small(ish) team of people making some truly great software. On the Windows side, Fookes Software comes to mind, again small operation, great software.
As an engineer who used to work for other firms I would work at a significant pay reduction to do fulfilling work. Companies who have shady business practises are a significant turn off and I doubt I’m the only one.
Now as a manager who has to hire I find it pretty straightforward finding passionate people to work with me simply because the work is compelling.
It’s a matter of getting your story out as the ethical data mining company, or something :) you’ll find like minded clients and employees do exist and that being ethical can be a competitive advantage too.
The key is that they choke you out... They have more engineers, more R&D and a better product because they have more revenue.