I think the normalization of gaming will, in the long run, be beneficial from a creative standpoint.
But I do agree that changes will be slow, not only because people themselves take time to accept new things, but because those pushing products and relying on a specific market model will fight to keep an status quo that benefits them.
I think of how mobile phones have been gradually accepted to the point that now we have a hard time figuring how we managed without them… But even today, phone companies still using the old mindset offer inadequate connection packages, and thus slow the advance of the technology (Example, companies blocking VoIP apps, or even charging for the use of IM services to compensate for the loss of SMS income).
In any case, we’ll see how it all evolves. The problem with mass marketing is that everyone is doing it. I think the appeal of niche development is that, by gaining a loyal customer base, you can make a decent profit whole not being subjected to the cutthroat mass-appeal market that, in the end, will be ruled by big-budgeted publishers (It’s a matter of business, not quality, sadly).
But that’s the trick too. Developing for niche markets requires a different approach, probably a deeper understanding of what your audience is looking for specifically. And a whole lot of luck.