Not sure exactly what you're asking, but the fact is that trading has been drying up. Since 2007, volume has plummeted, and August I believe was one of the worst, if not the worst, month for people withdrawing from mutual funds. Less and less retail are staying in the markets because of the volatility.

So I don't know if it will get cheaper to buy and hold. It will definitely get more volatile.

If the increased volatility is driving people out of the market, people who don't mind the volatility should profit, shouldn't they?

Exactly, until their counterparts are all gone and they're left moving hot potatoes among themselves.

Why? Warren Buffet doesn't need a counterpart after he buys a stock.