While I agree with your thoughts on blends and blending (some companies are even selling single malt packs to blend yourself... see Tomatin) I really have to disagree with this statement. Just look at the wine scene. Even a cheap drinkable wine will run $15-20 dollars/euros. But that bottle wont last near as long as a $50 dollar/euro bottle of single malt. You step up in price/quality of wine and things get rapidly more expensive for the quality. Many good single malts can be had for under $200 and even a lot under $100. I believe that the hype will eventually die down. The single malt market rides incredible highs and lows.
I believe there to be many more good single malts than blends. Not saying there arent good blends out there.