> Cool software that makes money (game development) doesn't pay very much.
Your thinking must be stuck in the last century. By the time I entered the game industry 13 years ago, salaries were already on par with the software industry at large. My first full-time position was in 2003 and paid $85,000/year. Based on the numbers I've seen, game programmers currently earn significantly more than web developers with an equivalent amount of experience, despite the wage-inflationary effect of the VC money faucet.
The coolness factor used to play a greater role. I would say it still affects the supply side for QA, design and very entry-level positions in programming. For programmers with any level of competency and experience, its role is negligible.