Earlier quoted context omitted.
Our startup Lambda ( http://getlambda.com ) competes with both, but we're not the least bit concerned. I already thought of elance/odesk as being effectively the same, in the sense that they're both known as places to find cheap, off-shore labor. I don't know any devs in NYC who've seriously considered working through either site and don't expect that to change. Likewise, I don't know many hiring companies that have…
I've been working through Freelancer/Elance for about 5 years now. I'm quite an experienced iOS dev and typically only apply to the higher priced jobs which then tend to lead on to repeat work. I just took a look at your site. Although I would consider myself quite experienced I'm not a 'rockstar'. What kind of devs do you accept to join Lambda? What do you consider an 'exceptional developer'?
For the types of projects we work with, "exceptional developers" might be better described as "competent developers, great entrepreneurs". Of course, that wouldn't be ideal marketing copy :)
In general, raw technical ability isn't a huge factor in commanding higher rates. There's definitely a minimum threshold someone needs to pass, but you'd probably clear that easily if you've been freelancing for 5+ years.
Instead of learning to code faster, you'd be better served by learning to code less. Clients often have big ideas that would take 6+ months to build in their entirety, but which could be shipped in weeks by eliminating unnecessary features. Convincing them to cut those features is a skill in of itself, which is often what separates "freelancers" from "consultants".