i wouldn't really say biting the bullet. The market is there. there are many iCAfes with no gaming at all, and are making more profit actually than most gaming based shops.
it's really how you plan to attack the market. if your shop is full of kids, noisy, and rowdy, those who are looking for quiet internet time would shun away.
mine is in between the gamers and plain internet users. only 4 units actually have a PCIe video card installed. so far, i have no use for high end video cards since i only install the games my machines can run properly. let the other shops have the rest.
therefore, i developed my market "niche" and many have tried to get my customers and failed (so far anyway, 8 years running). Why? because here it's quiet, doesn't smell of sweat, and they leave knowing their flash drives are virus free. My registered members now number to 350 pax. If they're going to use a computer, my shop is the first on their list.
When I started in this industry, there was not one iCafe put up in their homes. All were in commercial areas, at least as far as i can tell. So I tried it in my area and home. With a lot of hard work, I developed the market, and had a great start. I don't use an air conditioner, but I'm able to maintain a comfortable temperature for my clients.
After 6 months, my neighbors got in the act. See what I mean? Markets can be developed if you just work on it. Problem is, most people are just too lazy to use their head and make something new with their money. They look for existing markets, and use the time tried "price dropping scheme" to get some of the pie, strangling off any chance of a decent living.
For me, that's not being an entrepreneur. It's called being a leech, and when leeches usually run out of blood to suck, they close shop and go on to another victim or go broke.
My point in this whole post is, "Don't be afraid to be different!" Strive to be unique, so that you won't be affected with the slightest competition. Don't be contented with a piece of the pie. Create a whole new one for yourself. If you've got what it takes to run a Linux based shop, then do so. You just might surprise yourself. If not, then I hope I won't see you in the "Nalulugi ang Shop Ko!" thread. Heaven knows there are enough Windows based shops in that one with every Online game installed in their units. :-/