This has nothing to do with competition and everything to do with physics.
Planar photolithography has its limits. Back in the day, it's true that processor updates were very frequent, but that's because shrinking the process was relatively easy. However, today's 14nm process is pushing the absolute limits of quantum mechanics. The transistor dielectric layer in a 14nm process is 2 atoms thick. Multiply that by billions of transistors that all have to be atomically perfect. You'll spend billions of dollars in R&D to get there, and oh, consumers won't pay more than a couple hundred bucks per chip. We're rapidly approaching the point where you simply can't shrink the process any further due to quantum physics. The only place left to go in conventional silicon semiconductors is to make single atom-thick transistor components, which might be achievable with many years and billions of dollars more in research.
In the future, we will see the emergence of exotic compound semiconductor materials in order to improve speed and TDP, such as Gallium Arsenide or Cadmium Telluride. However these technologies are incredibly immature compared to silicon and we're years, if not decades, away from seeing their widespread emergence.
This is the new normal: years between processor updates that will maybe deliver a few percent in performance improvements.