Regarding:
1. You may be partially right. But the days of QUALITY freelance writers (but not pseudo-experts) are not over. I'd say that there is brutal competition for poor and average-level papers that quite often
may be successfully written by ESL writers, but when it comes to high quality / professional / specialized assignments the competition is quite low.
2. Partially true. It's probably 4 months, not 6 though.
3. Yes, the example academic research is mostly a seasonal job; still, there are people (usually adult students) who may partially compensate for few orders during the summer months.
4. Mostly correct. Easy orders taken by ESL writers from less advanced countries who are okay with working for $2 per page. The problem (for good writers at least) starts when complex orders only pay $8 per page and their failure rate and research time are great.
5. Mostly true. Quite often a student who gets the best deal / discounted price gives most of the headaches.
6. It may be true for foreign sweat-shops, but the ones from the US or UK tend to treat their writers as an important asset and usually cover the cost (don't give any 'penalties') as long as the writer did its job well and followed the customer's instructions.
7. Hm, have to read the news about ITT (haven't heard of that).
8. Yes, students aren't typically helping when it comes to advertising of a freelance writer or a writing service (even if they achieved great results with them). You'd think they have 5K followers and they'd mention you if satisfied, but it's rarely happening. They just don't care and some of them don't want to discuss it in details anyway.