Re: I'm haveing a moral dilema,
Without a patent it simply becomes a matter of choice. If people are satisfied with the other product and they are happy with the service provided etc. most won't change. Also if you claim you can make essentially the same product of higher quality for less, perhaps the other party is charging more than market value.
With all that in mind, if you are just doing this as a hobby not concerned at all with a profit, that could force the other companies to drop out and because you aren't serious about making it a viable business, the product disappears and we all lose.