No, it's doesn't bother me. Well, it does, but not in the way you think.

I know that manufacturers have slowed down on new game production. It's not 1984 any more, when you could buy a new Ms. Pac cabinet, stick it on any street corner and have it paid off in a week. Those days are long gone. What bothers me are the people who are for whatever reason so dead set against arcades, that they pull the "Arcades are dead" flag whenever they decide to extoll the virtues of game console XYZ.
It's like saying "Movie theatres are dead" because DVDs were invented, or because peer to peer downloading exists.
Has arcade income decreased? yes. Do people still go to arcades? Yes. Not everyone has a dedicated cabinet in their home to play Gran Tourismo or whatever, but in the arcade you have steering wheels, pedals, etc. There are some games the home consoles can't quite match in terms of the gaming "experience."
I own all the Namco classics disks for the original PSX. Would I rather play those, with a game pad, or play Pac Man in a cabinet with a real joystick? Joystick all the way.
Tempest with a game pad or with a rotory knob? Knob. Street Fighter with a joystick and 6 buttons, or a gamepad? Stick and buttons.
But that's just me. I grew up with arcade games, and my first console was the Intellevision. I skirted the whole NES craze that slammed the hammer down on the arcade industry in 1985. I didn't buy my first NES untill 1994 I think.
Each week I see kids come into the arcade that started coming in when they were perhaps 8 years old. Now they're 16-18 years old and while their gaming habits might have changed slightly (from 100% redemption games to a 60/40 arcade/redemption split) they still come in because at least in our area, we have something the console systems don't.
Will arcades ever completely die out? It's possible. Strongly possible. With recent world events and rising gas prices, it wouldn't shock me if in 5-10 years we shut our doors. It's sad that in 20 years we who grew up with arcades will be in our 50s-60s and our kids/grandkids won't know what an arcade is, aside from the odd classic game in our basement or the occasional Mame cabinet.
Shoot, I just realized I was on a soapbox. Sorry about that.

I am interested in seeing what Ultracade can do as far as their pinball cabinet.
We'll just have to wait and see, won't we?

Russ