supply and demand isn't just about cutting supply to up the demand then ..? substitution, affordability etc play a role too.
effective supply isn't only about absolute amounts - it is about market liquidity (willingness to sell vs hold, market activity vs. circulating supply), convertibility (and costs) etc.
in short i. i am not seeing the supply vs. demand straight-line argument and 2. ETH is prime for someone to take over their market. robot-kid-genius has a strong brand though. probably the strongest in crypto.