Where is Indy moviemaking going now?

Just when you thought was getting good....The old rug pull! Latest info from the film markets is the fewest number of indy movies are being pick-up... and for the lowest prices. Why? Simply because there is now a glut in the marketplace. The very things that made it easier for all of us to make good looking movies, i.e.; Hi-Def cameras like the Sony EX1 and fantastic editing systems like Final Cut Pro with the Studio II bundle, have also allowed a bunch of other folks into the pond. Many with marginal talent, yet they get to muddy the waters. I'm even reading posts where video guys are bemoaning that falling marketplace and saying they think they'll get into feature moviemaking as a what to make some money?!?! What? That's truly a grasping at straws. Let's see... you have falling income now, so let's go out and spend, spend, spend on a high risk venture that has a history of not making the investment back? Duh... Yeah, that's the ticket! And there's the message. From the outside, moviemaking looks profitable, but I ask you, who do you know in Sacramento that has made "profit" from making movies. Maybe one or two I can think of, but that's it.
Now I didn't say I'm going to quit making movies. What I am saying is, I have to be even more careful on the budgets in order to even have a chance to make a profit. I'm not going to look at those inflated $750k to $2million budgets because if I have to self distribut (which is most likely going to be the case), I pretty much have guaranteed I'm going to have a substantial loss. My thinking is to keep the budgets around $80K to $150K and I might have a chance.