People have been saying this for years. All I can say is that plenty of people still seem to be buying a lot of high end custom cues, and that those markets were always small but strong. I like very high quality and often high dollar cues, and personally speaking I pretty rarely have any trouble selling them. I often even make a buck or two on them. I do think that the super cheap cues and the higher end stuff both have more robust markets than mid-range cues at the moment. The super high end stuff will always have rich buyers, and the low end stuff will always have league players. The mid-range customs are probably who's suffering right now.
And in case it wasn't obvious, I know custom cues won't make me play better. I just love the artistry of them, I love how they look and feel, and I love having a build come together - especially when I sourced the wood and other materials myself.