Hello!
And thank you for your post. Yes, I'm sure you are right that many traditional publishers are printing fewer titles. The economy has forced this change, but remember the economy is like the tide, it comes in and goes out. Times will change. The creativity you show at this point may make the difference in whether you achieve success in the future.
It also depends on what you mean by the term "successful." To date I've sold about 45,000 books and products that I've self-published, written and designed but that doesn't mean I'm at the stage where I can quit other work I'm doing to bring in income.
Laura Duksta is a very successful children's author who self-published initially and went on to sell over 250,000 copies of her book "I Love You More." It's a wonderful book and she's an avid marketer and self-promoter. She eventually sold her book to SourceBooks and has gone on to write a second book.
There are many others. But I won't lie to you, it's a difficult road and you must be willing to promote, promote, promote!
I'll be happy to answer any other questions about this topic and you've given me a great idea...an article about successful self-published children's authors.
Thanks again for your post.