It is very sad, but looking around, it is not really a surprise.
The entire paper publishing industry is in a state of change, becoming a niche market. Slowly but surely, you can see it happening. Electronic media of all forms is changing publishing, radio, music, and eventually video.
D20 significantly increased the number of publishers competing for dollars at a time when the market was struggling against computer games, trying to see how this new platform fit into the overall picture.
One little downturn in the market can have profound effects on a market this small with this many competitors in it.
The short answer becomes "you can live your dream in the RPG world, but the pay won't be so hot and the risks are manifold."
Thus, I keep my job in a much larger paper publishing market, and just freelance in the RPG world. Of course, I'm happy in my day job, which makes me lucky

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