it rewards what people want, whether their wants are right or wrong, good or bad. The rewards are doled out in proportion to the desires. If 80% of people only care about low price, then WalMart should lead with that 80%. The 20% who care more about aesthetics are willing to pay more for them, and thus those customers will reward a Target or similar store instead.
I agree that choice is a vital component of a free market. But I disagree with the customer focus – customers may only choose from what is offered. I believe business behavior distinguishes free markets – the salient feature is the business’s ability to provide choice, not the customer’s ability to choose.