My idea for how to generate income would be by selling licenses. Recurring revenue would come via support contracts and consulting services.
I do know that not having an SaaS product will likely limit the investment I could get. I am ok with this.
Is a Non-SaaS software business still a viable model, or has the world moved on?
Yes. SaaS is losing its advantage as the browser is becoming a better environment with better processing, soon it will not make sense to pay for many things hosted because of open source alternatives that are very easy to run nowadays - meanwhile saas/subscriptions fatigue is only growing.