Yeah, but the problem is that this leads to a bunch of good software for software developers. :)
There's a huge population out there with wants and needs that aren't captured by the tastes of a typical geek. That's where the money is, which is why you get so many dumb (dumb in hindsight, that is) startup ideas. The risk is higher doing something outside your own "internal market", but the payoff is higher too.
Anyone who makes a programming environment that's actually liked by most girls will revolutionize programming and make a billion dollars. (Because that person will solve some fundamental contradiction in programming.)
I can think of lots of things I could build for myself that I would love that few if any other people would find useful - I would rather spend my side projects on things I love and a lot of other people would love.