I can see there still being a market for "cheap printer, expensive material", I don't see it putting the current business model out of the market.

Mostly the "Cheap printer trap" will probably corner the market on poorly researched gift purchases. But the business philosophy that comes up with the cheap printer trap also cuts every possible corner to keep the price down even further. In this era of instant and honest product reviews, that just will not sell with a large segment of the market.