It is my hope that my average electrical cost will balance against their lower electrical cost plus their operating cost, at least for awhile. Eventually it will not, and it won't matter if I have 100 or 1000 miners - once that balance tips, I'm out of business. Good news for my competitors. Others will likely fail before me, which is good news for me. However note that difficulty just continues to increase, so people are not failing in sufficient numbers yet.
Staying out of the red is key and I want to emphasize what you say here because when others drop out, difficulty drops right behind them which eventually buys you more time in the green. To me, the name of the game here is
EFFICIENCY, because as long as Revenues > Expenses, I keep mining. When the market is saturated, and everyone has the most efficient miners, and no one makes a profit, there will be a demand for more efficient miners, and that will be the way to remain profitable.