It's interesting how bad incentives are when something with qualitative differences (flavor, heat) is sold by the pound. Making it more palatable expands the market up to a point, but so does requiring more peppers generally. The most durable countermeasure seems to be totally outside of the purview of economics: building up a culture of caring about the product. Like tomatoes in Italy, or coffee beans among coffee l…
I don't know that we need countermeasures, as such. I think it's fine to have a very common, affordable product that is predictable and palatable to the masses alongside other more niche variants which are popular with "enthusiasts" (and therefore might be less widely available and more expensive).
That's kind of how it is with coffee. Most people get theirs from Starbucks or some other big chain. I hate that stuff but they clearly like it, and I don't begrudge them it. As long as I am able to get my fruity single-origin light roasts.
I guess maybe you don't have those niches in jalapeños (I don't know where I would go to get a spicier jalapeño) but as you mention, there are other peppers we can look to if spice is what we want.