Right, and my point is that "ideal free market dynamics" conveniently always ignore this failure state that seems to always emerge as a logical consequence of its tenets.
I don't have a better solution, but it's a clear problem. Also, for some reason, more and more people (not you) will praise and attack anyone who doesn't defend state A (ideal equilibrium). Leaving no room to point out state B as a logical consequence of A which requires intervention.
The definition of a monopoly basically resolves to "those companies that don't get pressured to meaningfully compete on price or quality", it's a tautology. If a firm has to compete, it doesn't remain a monopoly. What's the point you're making here?
The much bigger issue with monopolies is that there is no pressure on the monopolist to compete on price or quality of the offering.