You have a point about all the information you provided OP, and many businesses have collapsed due to the business owner knowing all this pricing strategy while some business owners that understand the pricing strategy don't know when to truly apply it to boost their business.
Having said that, when start a new business I believe using all the 3 strategies will help and the best strategy I believe it good to use for a start is the competition based pricing.
Price war is going to make the one who started fall and also the other businesses as their own expense. It's never been good to do this kind of price war because they know that from the little margin that they get, they'll decrease it if they adjust the prices.
The good products don't have to lower their prices if they're known to be good and liked by the consumers. Businessmen should lift the other businesses up although the competition is tough.
They should help each other and should be tied with the pricing that they have so that the consumers can still go to all of the businesses that are fairly pricing.
If you're relating your response to the statement I made about the use of competition based pricing strategy when starting a business. I think you don't understand or missed the point about the definition of what a competition based pricing strategy was, which is also explained in the OP.
Having said that, I make this statement because the business world is already competitive, and the best way to start and gain the heart of customers is by making a few sacrifices of price reduction of products and services. An example is a product is sells at $2, and your profit is $0.90. What you'll do is split some portion of the product price by selling at $1.80.
Yes, you lose some cents, but you're still making a profit and getting more customers so it is still a win-win. This is what I mean, and a lot of big business owners use this strategy