These can lead to opportunities to maintain older software, or work on very specific projects. I did well updating and maintaining ancient Microsoft Access databases for small and medium size businesses who relied on them for day to day operations.
I'm currently utilizing several contractors who specialize in single products, and know them like the back of their hand (Lucine/ElasticSearch for actual full text search, not just elk stack)
There are TONS of "Full Stack" developers out there, so trying to work in that environment until you have a solid client base is, like you said, a race to the bottom.
On the local SMB side, I never told clients I was a Software Developer. I was a problem solver who could use technology when appropriate. Ask some local companies or SMB employees what the most painful part of their day happens to be. Maybe its something you can solve with some out of the box open source, a repurposed desktop as an SMB Server, or a little software development project. These things turn into recurring revenue as you save the companies money and time.