I have to ask whether this statement is correct or complete: "The EMH...assumes that competition results in asset prices that reflect fair value and self-stabilizing capital markets, allowing no room for excess returns for intermediaries."

I have heard Dr. Fama speak on this issue, and he contends that people don't understand what EMH is really saying. I have always taken it to mean that the market price reflects available information efficiently so that if you lack inside information, you are just guessing that the price should be different than it is. And even I might have it wrong here, because I'm rusty on the actual paper that laid out this concept.

I think the responsible thing to do is to refer back to what has actually been published/clarified on EMH and make sure you are blaming the right thing. If the real problem is lazy thinking rather than the intellectual framework, that would make more sense to me.