Wow Edwin,
Nice long detailed answer. joniki, you too!
Thanks both for jumping into help.
Agree that finding a less competitive niche when starting out is important. I'll add that there could be 2 strategies depending on your skill, commitment to the particular market and some other things.
One way to go would be to get the very specific niche domain, example littlebluewidgets.com. Then only focus on that one specific thing.
But then if that doesnt work out, not much else you can do with that domain.
The other way to go is to get a broader domain name you can use for other RELATED products or topics. ie bestdarnedwidgets.com. Then on that domain you still only focus on and start with "little blue widgets" in the beginning when you are new, but can expand later to electronic widgets and red widgets.
Having all kinds of computer probs. Need to log off and do some virus scans.