Is the web development market over-saturated? Are your sales down?
Yes it is a saturated market. But just like (almost) everything else, if you are good, you will do well.
Generally true but clients can’t always see the quality of code if the UI is the same. So cheaper programmers may get more work than higher priced and higher quality ones.
That’s not what the market seems to show… more and more people are aware of how the web works, there’s an increasing need to follow guidelines (for legal reasons) and while there will always be a market for the bottom dollar trash, the people who actually know their stuff will always find more work on the grounds that they can outright prove their work is of a higher standard than the morons who push out junk and claim it as a masterpiece.