I'm not entirely sure if you're referring to 'your competitors' to mean 'other recruiters' (not sure you realized I'm a recruiter), but my comment here actually is referring to job seekers interacting directly with potential employers without any recruiters involved.
I agree entirely with your second point. Identifying myself as a recruiter immediately is the end of conversation with many in the industry due to the actions of a growing percentage of recruiters. It's unfortunate, and one reason I'm expanding business into consulting with companies to help them attract job seekers without using recruiters. Candidates these days are often inclined to go directly without a middleman.
But this is the real world and standards aren't going to be kept that high. Even if you stick to doing things well, your competitors won't and they will turn us off you too.