I tend to agree with you. Imagine if a restaurant complained that they are losing money because people are making their own food at home. I think it would be clear that said restaurant isn't providing enough value to compete at that point.

What would be more likely - that everyone cooking at home is a michelin star chef, or that the restaurant(s) losing money weren't very good to begin with?

Enough with the food analogy - respected and valuable journalists and news agencies are still thriving. Facebook is not eating AP or Reuters lunch, nor the Financial Times or other specialized organizations.