This is a major issue for all sectors of the web development industry. The overseas outsourcers are charging 1/10th or less for a low quality product and businesses go for it. This is the main reason I'm getting my CS degree; I have no plans to continue doing web development (I'm going towards systems programming).
They would pay me $70k a year which isn't as much money as I used to make freelancing, but I don't have to deal with constantly finding new clients anymore
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You also won't have to deal with the additional taxes which freelancers pay, you won't have the enormous amount of non-billable hours freelancers deal with either.