That might be true, but you're comparing apples to oranges. Your talking about something else entirely.
Will mpix provide the website for customers to see the photos? Help advertise the event? Provide the shopping cart system? Credit card processing? Invoicing? Packaging? Shipping? Customer service when necessary? No, they won't do that. There a lots of places you can get good quality prints made, but PlayerPhotos does all the stuff I don't want to do. I just shoot and upload. You can't get that kind of simplicity with mpix. I'm making $500 -$1000 a month for a few hours work (and fun) and basically all I do is shoot.
Also consider that if ones going to consider purchasing a digital camera which presently retails at about 1k, that about one year from now (if it's still being sold) that it will then retail at about half that much.
So what's the big deal? In one year my 1-3K camera will have earned me 10-15k on the weekends and it will still be running fine. My D1X is three years old and has never been serviced. It's got many years to go before it's dead.
You could make the same argument about computers, televsions, PDA's, and almost any electronics. Everything digital is dropping in price. There are those folks that just keep waiting and waiting for better or cheaper stuff -- and then there are those folks that buy what's available and earn money with it NOW. While you're waiting, I'm earning and having a good time doing it.
Just because digital camera's are getting better and cheaper doesn't mean that I have to buy every next generation of camera. Nikon is about to release the D2X and I feel no urgent need to buy one. Why should I? My D1X and D1H will continue earning me $500-$1000 per month regardless of what the "newest", "greatest" camera is. It doesn't matter. It's a tool.
My Betacam is SIX!! years old and still working 15-18 shoots a month? Do you know how much money that is per year? Maybe I shouldn't have bought it back in 1999 because I heard that HDTV was just around the corner. I wish I had waited.