Yes, as the labor economic changes many things will cost more.
You are correct that if demand goes up, price goes up. But I think the Chinese figured out that they would sell more lasers if the price came down. And they have. The profit margin is very high for them, so in either case they do not lose.
Also as technology progresses, prices go down, because items are easier to manufacture. If someone said that we would be paying around $50 for 1-2W 445nm, 600mW 405nm, and 700mW 635nm diodes a few years ago, people would not believe it. Next few years we will be working with micro diodes full time as the PICO projector progresses in power.