> Is there fewer people making desktop software nowadays?
Yes. Developing native desktop apps is more work (Win32 and Cocoa, who even knows those? you'll have to implement the app in both) and these days you'll have to go through the app signing bureaucracy even if you're not using app stores. And good luck with the monetization, especially if you're not distributing through app store or other and paying a huge share for it.
I make my living selling desktop software for Windows and Mac. Yes, there are definitely less of us than there were 15 years ago, when I started. But there are still plenty of niches where desktop apps are as good as or better than web apps. I use C++/Qt to stay away from the horrors of the native Windows and Mac apis and avoid bloat. Code signing isn't a big issue. I don't sell through any app stores. Getting noticed is an issue, but it always has been.
Yes. Developing native desktop apps is more work (Win32 and Cocoa, who even knows those? you'll have to implement the app in both) and these days you'll have to go through the app signing bureaucracy even if you're not using app stores. And good luck with the monetization, especially if you're not distributing through app store or other and paying a huge share for it.