To give some of you a bit of hope....
I run a niche site, 10 years in the running. Lot's of original content. Over those years, we've written approximately 4,000 in-depth tutorials related to video editing software.
Our company has never paid for a single link, and we've never asked anyone to link to our site.
For whatever reason, no single Google update has affected our traffic. We've seen a steady increase over the years.
Traffic has gradually increased, without a hitch, to 4500 unique visitors a day. Granted, that may seem small compared to other businesses. but considering we run a niche software training business, we couldn't be happier.
Now......we have noticed certain 'money keywords' bounce in and out of the #1 position through Google's various updates, but it's never been devastating like many describe.
The Panda update seemed to favor us, returning all of our 'money' keywords to the number 1 position.
I hope this gives hope to those individuals who run a 'niche' business. Our experience has been, if you produce good quality content, the visitors will come.
However, It's still scary that Google generates 90% of our traffic. That definitely makes us nervous.