Perhaps, but they are competing against 25-30% humans who aren't as optimal probably, which makes it profitable still (and the bot technologies are still improving).

I don't see the point as it's closer to 100% bots, which is the incentive obviously. You'd eventually end up with bots so good that the gains and losses are a lot closer to zero (less profitable).

I think the long term result is the end of such things, and the beginning of actual prosperity IF we fix the money. Just speculation, but I think the average human lifespan would already be 200 years if Bitcoin had existed when the Federal Reserve was created. I can imagine 100-200 years from now looking wildly different. Financial trading will probably seem retarded.