Oh, wait.
>>Colin is going to be competing in a huge market with a bunch of other players. He's also likely to enjoy his business a whole lot less.
Also painfully incorrect. When you have a unique selling proposition, it's easy to compete in a huge market with a bunch of other players. It's also enjoyable.
However I agree, it does depend on Colin's motivations. If Colin doesn't want more users, and doesn't want more money (for even the same amount of work), then your viewpoint is possibly accurate and has merit.
Other possibilities for his lack of change are clear - we do not always act in our best interests for a garden variety of reasons(negative mindsets, backgrounds, etc etc). This can be very frustrating to our friends, who might have experience and insight into our situation, and want the best for us.