i think it's worth reiterating that the digital label medium allows for more experimentation, and less rigidity in genre, simply because you do not have the MASSIVE overhead that vinyl production brings.
if i am gonna put the money into vinyl, the first question i am gonna ask myself is: is there a market and will djs pick this up.
the first question i am gonna ask with a digital label is: is it good?
sure there is a lot of stuff out there and a flooded market, so those niches do have a purpose, but the digital medium (IMO) allows for a lot less sweating and a whole lot more opening of the mind.
that's my .03.