I would vote for both : "Is developing the way to go" & "Is domaining still a good option"
I think you need to add "Both" as a third option to your Poll.
There is no specific time to start developing. Also, domaining still a good option.
The problem with most people who tried to develop that they give up so fast. Developing is not just uploading some files or setup a website with CMS. It requires Marketing, Tracking, SEO, Trying over & over until you find the best affiliates to promote or best places to place your PPC/Affiliates ads etc etc.. IMO
If you decided to go with "Developing" I advise you to pick the best domain you have (targeted traffic wise) and start with it. Don't give up. Don't stop learning. Don't stop improving your skills.
May be these days we have a hard time selling domains than before but it doesn't mean Domaining is dead.
Domaining will never stop. IMO