I think you've lost sight of what supply and demand curves are supposed to represent. They're not supposed to line up or overlap; they're supposed to intersect

I think you've lost sight of what supply and demand curves are supposed to represent. They're not supposed to line up or overlap; they're supposed to intersect at a point representing the equilibrium price. And when the supply curve shifts, that equilibrium point also shifts. That's how healthy competitive markets work. As yields improve, consumers should expect to see changes other than dwindling stocks of low core count parts. High core count parts should be getting cheaper, or low core count parts start showing up with higher speed bins or lower voltage bins.