I'm really pleased with the direction this thread has turned. IMO, the intersection of engineering and economics is fascinating.
In this case, the topic is not at all new with LEDs. There was a time in history of incandescent light bulbs when consumers could find both "regular" low-cost bulbs and "long-life" bulbs on the store shelves. Long life came at the cost of higher price and lower efficiency. Over the years before the end of incandescent, consumer preferences drove the "regular" bulbs to improve their life, and the "long-life" bulbs to decrease their price. Apparently, the "sweet spot" optimum was somewhere in the middle.
To me, the fascinating thing about that story is that finding the "sweet spot" is an iterative process involving both manufacturers and engineers on one hand and consumer preferences on the other hand. In the case I just described, the optimum was in the middle. But in future cases, the optimum can be at any point, extreme low, extreme high, or middle. Engineering innovations can disrupt the balance as can changes in consumer preferences.
50+ years ago, I worked for General Electric. At that time, light bulbs were the cash cow that made the entire GE giant profitable. Back then, I may have been able to get my hands on GE marketing studies showing the data on consumer behavior. Alas, I didn't get access then and it is probably lost to history today.
But fast forward to this very thread. I can buy LEDs on alibaba.com for €0,21 each. They probably cost €0,20 to make and the manufacturer makes 5% profit. The retail price is €12,00. Somebody in the middle is making lots of profit. Suppose they made an improved long-life model that cost €1,00 to manufacture and sells for €1.,10 on alibaba.com. That increases manufacturer profit to 10%. But how would it influence retail sales prices and profitability? The answer to that question requires much more than engineering.
IMO it is much to simplistic to blame everything on greedy corporations. Consumers have a major say in what they are offered. Consumers can certainly be deceived and cheated in the short-term, but it is wrong to think that they are powerless.
p.s. History buffs should also remind us that this exact problem delayed by several years the "invention" of the light bulb by Thomas Edison (in 188? I forget the date.) There were lots of electric light bulbs around in laboratories for years before that. Edison's lab in Menlo Park NJ tinkered for years until they found a filament that gave a price-performance point that made the bulb an economic success. So in that perspective, this thread merely continues a topic that has been going on for about 135 years.

Gotta run now, but I have a link to a free biography of Edison that I'll post when I get a chance.