No, there isn't a middle ground - but there is a third ground: externalized competition.
Your first scenario is exactly analogous to only one physics textbook used at one university. (Let's call it Halliday - Resnick). Your second scenario is exactly analogous to a university that uses both Halliday- Resnick AND a second textbook (let's call that one Marion - Hornyak).
Do you seriously want to argue that, because the second uni uses two textbooks, there is no need for more universities?
Without externalized competition, any brand is either dogma or pointless. Fundamentals of capitalism, you know?
I could argue that externalized competition does provide a middle ground as I used it (i.e. something other than "there is only 1 true way", and "all ways are equally valid and thus pointless"). I could argue that, but I think I won't for now as we're getting off topic.
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