...but supply and demand from good true Diodes is outrageous, so so is the pricing.
That's not true. Supply and demand aren't the problem, the problem is these LEDs are difficult and costly to make. They're more related to computer chips than any form of lighting we have out there. They need lots of care and an advanced manufacturing process to produce diodes within the manufacturer's tolerance.
Take, for example, the IBM5100. It was largely considered the first portable computer truly for consumers (if you could call a 55lb computer portable...). The prices on these things ranged from $11,000 to over $20k, and that's in 1980's dollars. They weren't in high demand.. after the initial frenzy wore off, IBM had trouble selling the things... no, the problem with these things was they cost a lot to make, pure and simple. These things came with a 1.9MHz (yes, MHz) processor, 16KB of ram, and a 5 inch screen. You can walk into any Walmart today and pick up a cheap 15", 2.1GHz, 3GB RAM laptop for under $500. My point isn't to say that LEDs will be expensive for 40 years, but it's going to take a little while to improve on performance and price to where they become affordable and ideal for everyone.
Maybe at some point we'll find a way to use larger LEDs, or make the same LEDs work for a smaller space, but until then, the price for them will remain high simply because of the complexity and quantity needed.