Keep in mind that a big reason why there is so much competition from writers who don't charge much (besides the issue of people not commanding a better price because of their poor writing skills), is the fact that many people in IM don't look to freelancing as a main source of earnings, but as one money center to get them by while they are building longer term profits through affiliate/CPA sites and other ventures. Many article writers charge less because the market is demanding lower prices, which they accomodate because they are only freelancing in order to get quick start up or side money while doing IM, not as a full time gig.
It's kind of like grouping apples with oranges to compare doing 'master chef' like high-quality writing, with the 'fast food' level writing expected in SEO article and blog post jobs. While there is crossover, with some newbie buyers insisting on "1000% quality, 1000% unique writing, delivered ASAP for $1 per article, and some writers asking for $7 for machine spun mush, the two zones are clearly different and can command different price points. If the OP is going full time, it needs to be understood that means saying no to a lot of low-ball buyers, and perhaps bypassing many web writing assignments, in order to focus on the higher-paying services.