A few bad apples have hurt the reputations of others. While it hurt the overall reputation of "skinners" it really did nothing but help my business. Word of mouth is the best advertisement you can ever get. It can kill you are make you one of the best...
A lot of people really have no idea how it is to handle 100's of new customers a week or a month. It can easily be an overload. Personally I take care of my current customers before anything else. I turned down 5 custom jobs last week so I could get all of my current skins up to date 3.0.1 That was completed in 2 days. A very long 2 days but my customers appreciated it.
As it stands right now my bread and butter are my skins I have for sale. Custom 1 of a kind skins will be in my market very soon. Right now my focus had been on getting my site and current customers set up and happy. This means quick support, keeping skins updated, and just basically being around to answer questions. Now that everything has fallen into place custom jobs will come. I will finally start taking on some side work. But this has been almost 2 years in the making.
You will see a "lot" of new businesses popping up. The majority will either fail or bail. Or at least this has been the trend so far. The ones that actually care about the customer will succeed if they can stick with it and keep fresh.
And as far as "overcharging"... I still think it is true you get what you pay for
That is my 2 cents