Good content will definitely be more stable. Not a doubt. Title tags can be tweaked a little and good content falls little if ever, and tends to grow not shrink in rankings with fresh content and a large number of relevant pages.
And PPC is only getting a bit pricey for "big terms" because there are companies that are finding it harder to scale as they hit the cielings of certain terms, fully agree the "cracks" in the wall can be very nicely taken good advantage of by any site not needing 50k hits/day. 98% of companies aren't using PPC yet - once 20% or so do, which is probably a fair estimate of 1-2 years out, it'll be competitive down the whole wire - but as noted, if it makes a profit, it's worth it. If it doesn't - oops, you got own3d by someone with a more efficient product, system, process, etc.
Though it sure is nice to be inferior and yet profitable, will the ride lasts. =)
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