Matt,
Nothing personal but you're talking like the typical "pub lawyer" who thinks that everyone should believe in what they say because it's gospel!!
Personally, I disagree with what you are saying 100%, yes be sensible with what you spend your money on, but that statement runs true whatever the financial climate is.
The opportunities are out there for businesses to grab, the last 12 months has seen our business increase by nearly 50% and trust me that's not been achieved by battening down the hatches, stopping advertising and not investing in new equipment or ventures, it's been done by speculating on where we see the areas for growth coming from.
Last month we took on a contract worth over £1000 per week, it had been serviced by another smaller business who were unwilling to invest in the right people and equipment to service it properly. The client has even accepted a small increase in the unit price on what they had been paying due to our investments and guarantee of service.
Don't bury your heads, think what you are going to do to make sure you survive and grow your business in your area.
If you already have a good local name, then use it to expand into other related ventures.