What would you prefer going into?

Simple niche with no competition. It'll be hard to compete with bigger ones.
 
More competiton, I like defeating people.
 
The level of competition alone isn't enough to go on.

Competition isn't always a bad thing. If a market is competitive, it's probably competitive for a reason. If I see a way into the market then the competition just tells me there's money to be made.

Low competition is a mixed bag. You might just get lucky and find an untapped niche (for now) but it also might be a market not worth chasing. Limited traffic and ROI and (if you're talking about organic rankings) you still have to compete with authority sites posting crap 500-word articles that are vaguely related.
 
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