Speaking as a freelance programmer...
I think we are starting to see a return to quality over cost, certianly i'm not the cheapest and I have no trouble getting good contracts. I'm well aware of the cheapo overseas outsourcing market I get offers to send my stuff there every weak but the fact is you don't have the relationship, the control, the quality, the flexability, the pride in a good job etc plus much more.
You get what you pay for essentially.
This is so very true, Quality vs. price, you do get what you pay for and honestly holding out is a great thing. I think that when you have jobs to do and are willing to take a lot less money than what you are worth you are only hurting yourself. By outsourcing work you may not always get the quality you are looking for.