There will always be a market for custom-built sites. But for folks like local candidates and your dentist, they can really use something off-the-rack and affordable.
For example, most of the local candidates I've seen get volunteers to build their sites for free...and get what they pay for. Very few can afford the $10K it takes to get a decent site custom-built.
Have you thought about picking a vertical, creating an amazingly excellent site to serve it, then selling that site a thousand times with different skins? I used to do custom Web devt. too, and the sell-do cycle drove me nuts.
The site does a great job of telling me what you do, but not a great way of how you do it. Give me a breakdown of costs between some firm I might hire and using you guys. Etc.
I'm not sure I agree with your concept of a targeted web development app, since it's what I do for a living, but I wish you guys all the best.