Hay im a "producer" deal is we can bank roll a film and my studio cost $20K. (we have film credits as producers)
I know $20,000 is chicken feed but im on the level of those guys you talk about, But I have Nuendo 4 and legal..
I dont think there is much wrong with these mini studios if they are doing it for fun LIKE I AM. I once had a client pay me $2500 for a week long video shoot and a week long edit with music.
But I had to simply go back to "lets make independent films for fun" because yes the industry has gone bad and flooded with pornographers wanting to make "Easy money, perhaps gazillions" Plus they have access to editors that work for $40 a day! No it might even be $40 per 8 hours!
I think there a level above future producers, guys like me with a spot of money to invest in their own projects but making money is tempting but in the end a no win/win if you factor the kind of clients that are likely to seek out the Sub $20,000 studios like mine.
Now I only work for free and turn down any one wanting to pay or rent my space.
Flat out, no way. (id take trades though)
Have you seen the clients that can pay $20 per hour for editing?

No thanks.
I even had one client take my prescription sunglasses.