No doubt. Which makes it a niche market. Why produce material only for that niche market?
I don't see it as a solely 'niche' market at all. It's an alternative medium for those that want it and can get the benefit of it. I can think of very few sessions that have been released just 'vinyl only' of late (Gearbox Records excluded, perhaps). For Blue Note for example you now have the choice of Music Matters (45rpm vinyl, work-out freaks), ordinary vinyl (Scorpio, Heavenly Sweetness etc), those Japanese super high res CDs, ordinary CDs or MP3s. I don't think we've ever had it better, to be honest. Certainly beats the old days of the 'no effect on pound in your pocket' and choice of warped/recycled vinyl or nothing. Usually nothing..