Paranoia should never be about what one’s competitors are doing. Following them just leads to “me too” offerings, and may lead you down their wrong path of making something your markets don’t need or want.
Instead, your paranoia should be that you wake up one day and the world has changed but you haven’t… that what you’re doing is no longer relevant. If you’re going to be paranoid about something, be paranoid about that. It will force you to constantly reinvent yourself before it’s too late.
And that… is what will ensure that you make the best possible product not only today, but for the next 1000 years. “Good” paranoia begets longoing relevance. Ongoing relevance begets long-term resilience.