Now, if you want to launch a website, you're not competing with another flyfisherman, you're competing with ESPN or Hearst. And yes, they can outspend you. They can drown you in red ink. Of course they can also drown themselves in red ink and have occassionally done so. After several tries, Hearst threw in the towel on creating it's own women's channel and put its money behind another women's channel which was a little more Net savvy.
Specialization is the answer.
There are still niches to be developed. The development of niche websites has only just begun, so there is plenty of room for smart entrepreneurs to figure out special needs and fill them. The same principal holds for the technology. Although it is increasingly specialized and complex, a niche site needs only a fraction of the technology which is out there. With enough time and research there are usually less expensive ways to do things, most of which involve figuring it out yourself, or hiring a handful of specialists to help figure methods out with you, instead of hiring expensive consultants.