coming late to the party and not sure where to jump in but...
1)if you don't read Romance of any kind then it's premature to try to write it. It is a field populated by writers who LOVE their genre and while it dominates the market, it's is almost dominated by writers - when you submit a romance query yours in one of Thousands they get in a single month, and that's not counting the already contracted writers who are usually brokering deal via agents that don't require a query process. So make sure you have a real feel for the genre before you assume you should dive in
2)Christian genres are going strong. Steeple Hill, a division of Harlequin has multiple lines and just announced another expansion, so opportunities exist. Also most major houses have or have just added Inspirational lines. Then there are the CBA Houses. (Disclosure I write for Steeple Hill currently and have written for Multnomah and WaterBrook)
3)Chic Lit is alive and well in Christian Fiction - Kristen Billerbeck is probably the queen. But it's harder to sell now because it's a niche and only so many authors are going to be needed.
4)Other forms of "Lit" genres are out there - I write Mommy Lit (Mom Over Miami - Steeple Hill) and what is sometimes called Hen Lit (older women _ Sadie-in-Waiting, The Sisterhood of the Queen Mamas, also Steeple Hill)
so there is variety in the lit voice within the Christian publishing world
5)Romance lines in the Christian publishing include Love Inspired (Steeple Hill)< Love Inspired Suspense, and the upcoming Love Inspired Historical line, most of the other houses publish Romance along with women's fiction and chic lit, etc but may not have a "line' for it.
6)I think that covers everything.
Annie Jones (April in Bloom, Love Inspired, aprl 06)