I don't think ARMA needs to compete with the other titles, nor should it. It's not in the same class, and if Bohemia changes its focus we will just end up with another COD or BF. Honestly, I believe in the future we will see a steady decline in the amount of interest placed in the COD franchise. It has been so focused on pushing out a new game every year, you end up with the same garbage every time. Their games are losing the appeal it once had, at least to me it has. COD is like the iPhone.
I understand some people enjoy the fast paced, "run and gun" of the other franchises. Those types of games will always have a fan-base, just as ARMA will always have its. I think Bohemia should stay on its path. We don't have enough game like this as it is.
Honestly, if ARMA had the capability of working on console without its content degrading... it would have a much larger community. Its simply good gaming and anyone can see that.