Well, right now, VFX and motion graphics are still fairly distinct industries although crossover is becoming more and more prevalent. And I think that's just because mid-size and larger studios are having to offer more and more service to compete for survival. VFX and motion tools are really in the hands of everyone now, whereas studios alone used to corner those resources. What seems to be happening is that there's more work than ever, but there are also vastly more artists in the game, and that supply has grown so fast that it has outstripped the growing demand, and so prices have fallen.
That doesn't mean you can't make a living, though. Falling prices and access to the tools just means that a lot of work is now being done by artists in smaller, more fluid teams with lower overhead. So there's a ton of jobs coming out of 2 and 3-man teams. At the same time, there's still plenty of work being done by huge studios and agencies, because very large clients want the security of the massive resources those studios can bring to bear on a project at a moment's notice.
The main point here is: there's competition, yes. You have to be strong in your art and craft, yes. You probably won't be an instant millionaire, no. But there's lots of work, and while the industry evolves and restructures to these new conditions, you can be doing the exciting stuff you want to be doing, and be making a living in whatever weird way suits you. And that's not even the whole story. I'm sure other people have better insights from having been around the industry, too.