Efficient Markets; Advantages of ETFs and Competition

http://www.thehindubusinessline.com/2007/04/04/stories/2007040405340600.htm
I like this article, because it talk about Efficient Markets. In a developing market like BSE or NSE actively managed funds would perform better in short to medium term.
And also it talks about the advantages of ETFs, which are
ETFs are cheaper than index funds.
ETFs do not offer entry and exit
ETFs do not incur the cost of day-to-day liquidity management
Another important point to note is Competition reduces returns....as more and more people/instutional investors come in to the market, it will become hard to find value stocks.