I'm confused about runescape

What I don't understand is how is the lower the price of bonds the better? I believe 1 bond is around 3 which equates to 4-5m go.Runescape Gold farming websites sell 10m for 3. Now how is this good? Sure this would stop some people from buying off gold farming websites because they can do it legit from jagex now but for the same price you can get double your money from gold farm websites which wouldn't stop people that already buy gold.

And if the price of bonds continue to plummet how on earth is this good? Am I missing something obvious?

People use logical fallacies to prove that bonds are "working as intended".

They say that because bonds are more expensive than goldfarmers, and yet people continue to buy them for RL$, means that players are choosing to buy more expensive gold from jagex, rather than buying gold from a goldfarmer.

While this may be true in a small number of cases, the 40-50% of the population that they claim buys gold from goldfarmers will continue to do so because it is much cheaper. People will say that it is risky to do so, but ask yourself. 40-50% of the ACTIVE population buys gold from goldfarmers, and yet, they aren't getting banned.

Imagine if you were a speeder who never got caught because the police had no presence in your town. Would you slow down to the speed of other drivers who blindly obey the speed limit regardless of whether it made sense? Probably not.

Now, what i think really happened was this. That percentage of the population still buys gold from goldfarmers -- as they are still around, some boasting higher sales than ever. On top of that, now, is a percentage of people who buy gold from jagex.
The two have very little overlap, and the only thing jagex did was add itself as a member of the gold-selling game, selling to those who are willing to pay 4x the price for "safety", which essentially means jagex making empty threats about banning RWTers and making goldsellers look as corrupt as possible to deter gold buyers from going somewhere other than jagex's personal gold shop.

Things is to a degree bonds vs RWT gold do not have to line up.

For example lets say you see 2 watermelons for sale.1 for 5$ with a 1 in 10 chance of not getting the watermelon, and instead having your money taken, and a bullet to the head killing you.1 for 15$ 10$ of which goes to ensure you will get your watermelon, and no bullet holes through you as a person.Which one do you think most people will pick?There will probably all ways be gold farming...the real question is how much of it will there be? Bonds do not need to compete to be effective, they just need to be a safe alternative.

All of this of course assumes Jagex follows through on their threats and Ban people who buy GP from gold farmers though. That is the lynch pin the it rests on.