I’m not the most active punter, but I do punt exclusively in central London. In my somewhat limited experience, prices seem to be all over the map here, with no real rhyme or reason. I’ve seen some very good VFM wg’s who could probably charge more than they do (though I’d never say this in a review) and still attract lots of business, and I’ve seen some overpriced wg’s who still seem to be fairly difficult to book. I agree that there is a lot of competition here, with an almost unlimited number of wg’s, but there are also a lot punters here who can afford to pay more than many of us would consider to be anything close to VFM.
I hope you’re right, and that prices will eventually come down as competition increases. I’m not holding my breath though..