If you're looking to make easy money, then yes, hosting is a less fertile sea in which to cast your net. Hosting is a little more familiar to more people, more of them have an idea of what is "too good to be true" and "too high a price", and more people are more savvy (or less gullible) about how to do business on the web.

If you're looking for a business, hosting is no better or worse than any reselling or franchising business. The service is needed.

Individuals and businesses will continue to need hosting services. The specifics of what they need will continue to evolve, as will the cost of providing these services. People with the ability to forsee their clients' needs, the ability and willingness to meet those needs, and the ability and willingness to provide quality customer service - that isn't going anywhere.