I call B.S. on this.
Tons of new companies start up every year in saturated markets. Sure, some have a lot of funding behind them but I don't really think that money is the only way to get started. Sweat equity can take you further and more than likely help you to create a better product.
So who else agrees with me that when picking a niche, you should just go with something you love or prefer to do instead of something that has only 4,400 exact matches and low competition?