"Tiny minority" and "small demographic" are very relative terms. Roughly six months ago, Grand Theft Auto V--a very premium game with a hefty up-front price tag of upwards of $50--managed to sell 11 million copies for a gross of $800 million in 24 hours.Obviously people on here, and at sites like touch arcade, are in a tiny minority as compared to the market as a whole. I think all of us that are here can agree that we as a small demographic, would like to pay a one time up front fee for games and be able to play them outright afterwards.
By my estimation, that's not exactly a small market. Yes, 11 million copies isn't a big number, percentage-wise, compared to the 500 million people with App Store accounts. And no, a AAA multi-platform big-screen game with a quarter-billion-dollar budget isn't directly comparable to a smartphone game, particularly a freemium timewaster.
But the fact is there is clearly a sizable market for "traditional", non-freemium, non-ad-supported, pay-up-front-for-a-rich-experience games. Notably, if you find a market and have a reasonable price, you don't need to sell anywhere near as many copies to turn a profit as if you're using an ad-based or freemium model.