Short-term I see the big $$ taking control, but long-term I see no reason why people aren't going to want a quality product... If you look at the trend of organically grown produce/products since 2000, grocery stores nationwide have seen their biggest increase in sales year-over-year with organic related products NOT Monsanto and other GMO's.
As consumers become more educated, which they will, they are going to want a better product. Just look at high-end retail since 2008, their sales held together while regular retailers crashed. There is ALWAYS demand for the best of anything. There is no way that some 100,000 sq. ft. facility is going to turn out dank like a craftsman with 20 lights, your NEVER going to convince me. Machine-trimmed herb is for the birds, I like my trichomes intact thank you! Making extracts from machine-trimmed herb is ALWAYS inferior to that of quality hand-trimmed herb.
We also seem to forget that the best genetics are already in the hands of the true-herbsman. Are they all just going to stop making new strains and take their libraries that have been built for the last 30+ years and toss them? Me thinks not. These people have bled, gone to prison, lost family/friends all so they could protect their relationship with the sacred herb. These $$ men don't have an ounce of the same passion and dedication. That passions carries over to the end product, just as in wine-making, brewing beer, wood working, painting, etc.
The baby boomers control all the wealth in this country right now. They also happen to be the demographic that is seeing the largest increase in Cannabis consumption. Once they figure out what they are smoking is crap, your going to have a huge demand for quality products. Just look at food trends like farmers markets, locavore, etc.
There are only 5.2 million people in Colorado, and not very many people in surrounding states. OBVIOUSLY their market was set to tank like no other. If you look at Cali, 38 million people, the high-end producers are still pulling in money hand-over-fist. So you also have to consider the demographics of where you set up shop, just like any other business.