Epic Games makes Unreal Engine even cheaper for indies
geek.com
geek.com
As a dabbling artist who just wants to make something reasonably good-looking, the toolkit looks very intimidating. With Shiva and Unity, the end quality may well be lower, but I'll probably finish the game in the time it would take me to get to know the UDK.
Perhaps they might have a learning curve as a dabbler, but if you wanted to use your skills on projects for industry employers, or find an artist or developer to hire, you'd probably pick Unreal.
Unity probably directly supports users like you better than Epic does, but the size and age of the Unreal engine community tends to make up for that.
Disclaimer: I also built Epic's support system.
Dungeon Defenders is the most recent "small" title I know of using UE3. Infinity Blade was produced by an Epic Games subsidiary, but they'd be an indie title otherwise.
Most major cross-platform game titles are built on UE3, so it wouldn't be a technology reason that an indie game couldn't be successful using it.