The overall quality of the taxi service _will_ go down with the price cuts. There isn't any way around this.
It was obvious already when Uber was testing their service in Helsinki without adhering to any of the legal requirements.
But it's not just Uber - many other taxi companies operate in Finland already with comparable smartphone apps etc. And they also manage to do it without breaking the law ...
I always figured the primary point of taxi regulation in Finland was to ensure that the service would be available even in remote areas that couldn't otherwise sustain it -- but Uber makes it far easier to service those as well.