It's super competitive, and small games (that are financially viable) probably take longer to make than you realize (Super Hexagon took more than half a year to make, I was play testing early versions of it).
Yeah totaly, I'm working on a game right now that has been in development for 8 over years! But again, some amazing stuff is built at game jams though most need at least a month or so of polishing.
Toto, we're not in 2008 anymore :)