The cynic in me says your f'ed. You'll definitely have to repurpose because they have much too much inertia. Once flash search results start showing up in my google results, it'll be like, "oh, thats handy". I can't imagine myself using your site just for flash searches.

Actually, I think you're being too generous - I can't see myself using a separate Flash search engine even if Google does NOT also index Flash. As above, you need to think who your target niche really is.

Keep going. You don't know what opportunities lie ahead . We make our own "luck" by creating opportunities for "luck" to happen. So until their is a definite reason to stop (such as no more cash), keep going and see what happens.

You might at least want to get an original logo. I like bluebison.net as much as the next guy, but you should probably have something original if you're going to have a bunch of traffic.

We got permission from bluebison.net and she even offered to make a custom logo for us, but we're waiting to see if the idea is even worth investing money into at this point. We bought a logo off ebay (not suggested) that's on our wiki page of logos: http://mediawombat.com/wiki/index.php/Logos