Jeff Vogel has written an excellent article on Gamasutra about how he was able to do a great making games that cater to a formerly popular niche. I won't comment much, because it really is an excellent article: It gets everything right. It clearly states everything that is wrong with how big game companies do business nowadays, and everything that is right with how small ones do it. His opinion on piracy, and how it should be dealt with, is one of the most logical, sensible ones I've seen. It's a very short, very "simply" written, straightforward article, and yet it wonderfully explains how indie devs work and what it's all about, really.
So, I don't have much to say, except that if you haven't, go read it. Because, yes, this is why indie devs are great, and why there should be more of them, and why they matter.