Diamonds are far from obsolete as they are heavily used in industry; mainly as a cutting remidy, but also in a range of testing tools, like Vickers, Rockwell hardness test for instance, which requires larger single diamonds.
I believe you are refering to natural diamonds, which is inferior to industrial created diamonds in purity, and a price-level kept sky high by cartel regulations and very successful advertisement campaigns over decades. For those diamonds, I do agree with you. That is one bloated price-bubble I'd like to see pop as soon as posible.
Yes, I am referring to natural diamonds exactly. But i believe that this bubble won't pop as easily and so many people will continue to be exploited, crippled and killed in their mining.
I share your concern, and do not expect a sudden implosion either. There is also alot of people already "invested" in this gem - further reinforcing its position.
If you are looking for faster changes; play on peoples feelings, not reason. That's "not my cup of tea" though.
I totally agree with you on this one.