Customer Loyalty Anyone?

Whatever happened to companies that cherish their loyal customers?  Today, it pays to hop around from company to company.  It does not make sense to me.  Companies are willing to work so hard to get your business, but then they penalize you for being a long-time customer.  We recently received a bill from XM radio which we have on Bubba's vehicle.  For a year it was going to be approximately $190.  He decided to cancel because he didn't want to pay that much, so he called them up.  Immediately the guy on the phone offered to give him the year for around $80.  That is less than half what the original bill was!!!  Simply on principle he turned them down.  We went through this not long ago with Terminex.  If our business is so precious to you, shouldn't you be giving us the best deal possible instead of encouraging us to leave?  Could someone please explain this to me?