Yes, my point is the equilibrium gets lowered further if people are willing to accept lower profits or losses due to intangible reasons and/or commitment to sun

Yes, my point is the equilibrium gets lowered further if people are willing to accept lower profits or losses due to intangible reasons and/or commitment to sunk costs, self-image, etc. This is more characteristic of small businesses than large ones, of whom people always slam "bean counters". Saying "the competitive market forces" is not a proof or an argument that competition has to produce the outcomes we see. If people were different, less willing to take risks, then there would be less pain in a crisis.