Yes there are plenty of young photographers out there trying to make it in the profession, like me. But not all of them have bad business skills. I know how much I have to charge to make a profit, pay myself, and pay my business, and for those that do not, they will not be business much longer. They will either wise up to it and start charging more, or go back to there old job thinking photography is nothing about luck, telling everyone that in order to make it you need to be in the right place at the right time with the ... Just like everyone else who started a business and did not take the time to figure it out and learn from others in the industry.
But that is the nature of every service industry, no matter what you do. There will always be someone else who is willing to undercut you, no matter what you price is, to get the job. It does not matter if you are a photographer, or a housekeeper, or a environmental consultant, or an architect, or whatever. I know this because I talk to a lot of people and they all fell the same about it. But the ones doing the best (which is not that good right now) dont think about it and they do not lower their price because of it. They sell on satisfying the clients needs.
People will see a need for quality; they will see the business they are loosing or the name base that is not as strong because of the lousy images they are using and hire good photographers again. We just need to wait it out and not do anything that will degrade our reputations, like low balling.
PS The funny thing is that I run into these hack photographers sometimes telling me that they are more competitive by charging $150/200 for a day shooting while meeting all kinds of new people. But what I know is that at that amount, with what I charge, I shoot two days a month, I will have already made more if they shoot every day they can that month. And all the new people that they have met and made connection with are not people that will respect the work and ever pay a fair wage. And last, without even looking at the work, I know the quality will suck, because lets face it, at $200/day, you have no room left to bring anything besides a camera.