"That said, I don't think those forces have ever really been allowed to operate to their full extent, for a sufficient amount of time, outside of fictional accounts"
Is the word "monopoly" fictional? That is the end result of non-regulated market forces. Next time you read about a blockbuster M&A just substitute "increased market share" with "reduced competition". And with reduced competition comes less pressure to innovate and improve.
My guess is that Theranos will stop marketing itself as a technologically innovative company. Instead it will try to get funding to compete as a service provider at the national level in hopes of leveraging its name recognition into enough market share to be acquired. The end game of many an entrepreneurial MBA.