I'm all in tears for the bankrupting industry! Not.
It's called capitalism. Meaning, you have competitors. Meaning, you cannot stay on top forever. It's no picnic, but that is how it works.
In the end, it is not about the industry. It is about the public and if they are getting the goods at the most competitive price. Monopolies of any kind create price increases, so if you like paying more for goods, then keep advocating software patents.
And let's not forget, the software industry already has a monopoly protection awarded to them - copyright (which includes the most draconian law there is: DMCA). And it's been awarded patent protection at the time when development and competition was fierce and there was no good reason to give them another monopoly. Now that they do have it, of course they don't want to give it up. They'll be screaming bloody murder for a long time. We've seen it all before.
Would things develop down a different path? Sure. Would we get similar results? Most likely. In the end, people develop and use things that work well and are cheap to produce. Just look at non-patented landscape of IP devices and web. Absolutely amazing what kind of software and devices evolved around this. But I'm sure you've heard all these before - no need to repeat them here.