The market has judged via its’ valuations that PSA has a superior product. If PSA refused to cross SGC’s cards (and there is no blanket policy, some cards do cross)they would not be diminishing their value, the marketplace has already done that. For all the cards that PSA refuses to cross to an equivalent grade they are doing nothing to the card’s value. For the cards they do cross they are increasing their value and indirectly the value of the SGC brand.
However, there is no reason for PSA to worry about SGC. Look at the lines in front of each company’s booths at the National and judge for yourself whether this battle isn’t already over.
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