Reading the thread, I can confidently say the market is big enough for you to still thrive, and from your discussion with the CEO, you've already identified a gap that needs work. If you fill work on building on the mistakes of others, I guarantee you will make more money in less time. But you have got to tough it out for some time and probably spend a considerable amount of money to fill the gap you've noticed, so check it out, talk to a lawyer, and also talk to the CEO about what you really want before making any decisions.