Get used to the concept of co-existence
Disrupt things with a Consortium model
Reach up into the growth space to take back your market from big players
The progressive views about your marketing, your customers and your competition as espoused by Seth Godin are seldom things with which I find disagreement . he walks a different path that started quite a few years back with his book Permission Marketing (summarised nicely here and I highly recommend the book of the same name, not to mention all of the rest!).
His views on de-focusing from your competition which to me only makes sense since you are unlikely to destroy them and so should get used to the concept of co-existence and applying that attention instead on what you do, say and sell, (and who you do, say and sell it to) is spot-on but I reckon it stops a little short. While he is far from incorrect I suggest that if you also extend your focus, wisely with research, planning and networking, you might find additional routes to explore.
In other words, pick which of your competitors merit your applying a different focus and perspective and a different set of goals to find and define opportunities to exploit for mutual benefit.
