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> i.e. everything should be niche?

This is not what I said.

My thought process is that I personally would like to see more products with a higher focus on being good for a smaller group of people, rather than cheaper and /or worse but aimed at a huge audience. [0]

Focusing on delivering a good product to a smaller audience allows you to have tighter feedback loops and create more useful iterations because of that. You can also usually charge more. Personally, there are a lot of product spaces that I currently prefer or would prefer spending more for higher quality. But I don't always get that option due to the obsession with casting a wide net, as it were.

Do I expect this to happen organically? No, market forces seem to heavily incentivize races to the bottom.

[0]: NB my use of relative statements and not absolutes. Going from one extreme to the other likely won't produce a net positive.



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