That seems fair. If you are looking to go ahead with the sale feel free to send me an email (fraser at username dot com). I have brokered a few deals for companies making 100k+/year.
I think you should be looking at the large picture here. Yes the local market makes sense to start but the idea is to scale the business up to take a % of a billion dollar industry not a cottage industry with say $100 mill total market.
I have to agree with you regarding the way everything is going. Grad school is a very common for everyone to have so being part of something like YC or TS is just another avenue to expand your education in exchange for a piece of equity.