Why is the industry so lame?

I'm a 40+ audiophile who just can't understand why the industry is so tied to the past. Countless audio manufacturers will eventually go the way of the buggy makers if this continues. Consider:

In 1998 the Diamond Rio was introduced and Diamond was sued by the RIAA.
In 2001, the Ipod was introduced and it held 1000 songs.
In January 2003 Flac was introduced.
In 2003, Sonos was founded.
In November 2003 the Squeezebox was introduced.
In April 2004 Apple introduced its own lossless codec.
In 2005, Apple sold over 20MM Ipods for the first time.
In December 2007, Apple sells its 125 Millionth Ipod.

As we head into 2008, this is where the industry finds itself:

A growing number of mfrs now have proprietary Ipod docks to enhance their revenues to the tune of $100-300.

Krell now has a dock dubbed the KID that includes a preamp for about $1300. Matching power amp TBD.

The vast majority of preamplifiers have no DAC or DAC option.

Bryston and Naim have integrated DAC's into one of their integrated amplifiers (Bryston's is an option).

Only Outlaw has a 2 channel receiver with built-in DAC.

Rather than seeing the emerging new technology as something to be embraced the entire industry seems to regard it as something to ridicule. Sure, not everyone wants a DAC in their amp but how many are buying $2500 CD transports these days or even $1000 phono cartridges.

When will the industry wake up and smell the coffee?