You and 10,000 others have the same questions. I don't think the economy has hit the bottom but I do think music has ( sound wise that is). Its starting to sound better and I think musicianship is on the increase so that means better ears are listening and will expect better recordings.
But I also think more virtual studios will grow and more and more home studio will be as good as " Pro Studio"; to a certain point. We are all gaining knowledge in acoustics which has been one thing that has seperated the pro's for the amatures. Get room acoustics right and a nice sound... what more do you need?
I wouldn't invest a dime in this business to make money but I would invest everything I have left in me, to do it for the rest of my life. I was born to be in this business but so sadly, I do other things to make money now. I am investing in vintage gear and planning to build my dream studio on a lake shore property I hope to own free and clear one day.
I don't care if my family comes with me or not, thats where I going to end up if it kills me. But I'm doing it for me. If I'm happy, I will hopfully live longer and be a better person.