A living income cannot be made by doing retail photography today.
Commercial photography is in almost as bad a shape.
You adapt by pursuing a career that pays a living income.
Today photographs are a bulk commodity - like bushels of corn.
In order - The Internet, the DSLR, social networking, and photo sharing web sites have all combined to kill the industry.
My apologies to the OP for not staying on-task as to your question. KmH's comment just got me thinking about how pros might handle the "new environment"; so a few random thoughts ...
So is there a big opportunity for pros to educate the huge number of novices?????
Running courses, workshops etc.
There must be 1000's of "wannabees" who would love to take better photos - but they only have a limited understanding of their cameras, exposure, lighting, flash, shooting a family event, running a business, post processing, displaying images.
Become their #1 "go to" place for improvement. Keep varying the offerings so they keep coming back.
Every year there will be a new group of potential clients buying a camera.
Why not tap into that huge market rather than struggling to find shoots of diminishing returns.
So break up the MIX of the business.
* Continue to offer a premium product for those that appreciate quality and are willing to pay for it.
* Add the education side to your repertoire of services and market to the MWAC/DWAC/part-timers. Hell there is a flood of them at sports events - get your word out to THEM. "I can help you take a LOT better photos of your kids". "I'll tell what settings you need to use and why". "Learn in a friendly atmosphere with other parents who want to make keepsakes of their kids" Blah, blah blah
Get access to private mentoring via subscription service - email access to you?
Instead of competing against this flood of cameras, get them to come to you so you can make them better????????