I’m sure of one thing, though: the market for paid-up-front apps appealing to mass consumers is gone. If you have paid apps in the store, you’ve probably seen the writing on the wall for a while.
It's a sorry state of affairs if things are as bad as Marco says, but I'm relatively confident that they're not quite so dire.
That said, I'm glad I'm not in the independent iOS developer game right now.
Still, could be worse. Marco could be an Android or Windows Phone dev.