Really? Right now there is one Stars game for $5/$10, and all the other tables are lower. So 9 people playing 1000nl, and everyone else playing lower. Meanwhile tournament-wise, there's an $1100+rake sng and a HU game for about that (forget exactly, but I think they were both $1100-something). And then there are the weekly big tournaments, saw a 4-man $10k HU tourney the other day, top 2 actually ended up chopping for $20k each. There's the weekly winner take all $5k entry fee tourney which got 20 a few weeks ago, not sure what's normal.
I think it's possible to make a living at either one, I was under the impression that at least live most of the pros did tournaments. Online I guess cash games are possibly more profitable because of multi-tabling. Tough to do that with tourneys where there are a whole host of conditions that are constantly changing and players have to make reads based on this (how desperate are others getting?) along with individual changes they have to make (short-stacked, what's the prize structure, average stack, how many to the money, etc.). Cash game using something like Poker Tracker+PAHUD can get a lot of relevant stats that shouldn't change a ton because stack sizes and conditions are relatively constant.