The situation you describe is almost exactly the same as the real estate market. Yet when you decide you want to buy a house, you don't wail and gnash your teeth over the fact that all the land in the neighborhoods you like already has houses built all over it. You go, find a house you like that's advertised for sale, and you negotiate a fair price.
People speculate in real estate and they speculate in domain names.
It is exactly the same. Both are finite commodities and both are risky ventures. It is just as difficult to hunt down and obtain a good domain name as a valuable piece of property. At least they are willing to part with those names for a fair price. Take a look at the giant Fortune 500 corporations and it's a different story.