Do you think we will have to reduce our prices to keep our standard of living up?
That sounds like a contradiction to me.
As williamx mentions it might be the case if you are commercial and want to keep hold of it. But i think well priced domestic work is different altogether and will eventually become (if it is not already) the cream work.
New window cleaners will most times charge less, but only because of inexperience and while they might be a threat to the odd job here or there they will never be a threat to anyones round if we are reliable and do a good job.
How many of us have picked up work at a much higher price than the customers were used to paying before? I'm sure all of us have, or will eventually.
As long as we keep quoting for the job rather than by the hour we should have nothing to worry about.
Wfp might be easier than working trad but it takes time to build up a round and that is where new wc will always struggle.
For new wc who have bought a round, they will still have to work it and are basically thrown in at the deep end. For example:
"round for sale in ******. Generates £2000 per month. £200 per day possible" blah blah blah. These earnings are most likely impossible for someone with no experience.
There will always be work out there regardless of how many of us there are.
It is a hard job and thankfully not a very glamorous profession to people outside the industry.