there is a recent thread around here somewhere on that very topic.
My take is that every venue has a price they are willing to pay for entertainment. If that price is $100 then they've already priced out a 4 piece band, and they're looking for 1 person to provide the entertainment (be it a DJ or soloist or karaoke or open mic etc)
You can't change that reality, but you can adapt to it. All commerce involves offering a cost-effective solution to fill a known void. If you can do that, you'll continue to get work. If you can't, then you'll go belly up.
If you can offer an entertainment solution that meets the needs of local employers and also meets your financial needs, then you have a workable business plan.
I think what you need to shed is the belief that you are undermining other musicians if you play with BIAB, because the businesses have already lowered their entertainment budget so low that full bands are no longer an option for them. In their minds It has become a question of smaller bands or no band at all. They are trimming costs to stay in business too. If I read your post correctly, you are already playing a solo act. So what's the difference in using BIAB to supplement your own performance? I would guess the only difference would be fullness of sound, which should land you more gigs.
Adapt and survive, or pursue an altruistic approach that severely limits the opportunities available to you.
That's my 2 cents, your mileage may vary.