If the market supports a number of competitors that are doing OK, and you are fine with working in that market, then go for it.
If you were wanting to be a category-killer then it doesn't sound like your market is suitable for that. So if you're playing "Go Big or Go Home."; you should find another market.
Right. The good thing about markets is that there are always options. There isn't one brand of dish detergent, one brand of cookware or one brand of bacon. "Go big or Go Home" is a bad mentality to get into because you're going to find yourself worried more about what other people are doing, worried about failure, instead of worrying about what you should be doing.
Basically, if you are going that route, you want to be the 80-ton gorilla in your market, you want to be first, biggest and most; you want to be Amazon, or eBay, or Google; not booksamillion, or ask.com.
From a distant perspective, it doesn't really matter if you build a world-changing, industry-creating, market-dominating company or a niche lifestyle company.
If you were wanting to be a category-killer then it doesn't sound like your market is suitable for that. So if you're playing "Go Big or Go Home."; you should find another market.