Bryan,
You could try salvaging it. Find something uniquely related to babies that you can't just buy in a store or that wouldn't be carried by many stores, but could be a good niche product for online buyers. Forget what "Wal-Mart" sells. Look for high-end, quality products that Wal-Mart just wouldn't normally carry.
OR just concentrate on one of your categories, for example Baby Bedding:
Designer Baby Bedding
Disney Baby Bedding
Custom Baby Bedding
OR another idea could be Baby Carriers:
Bjorn Baby Carriers
Baby Sling Carriers
Backpack Baby Carriers
I think I just sparked some ideas to salvage my own sites
For example, I sell an ebook on my wedding site that gives couples ideas on how to have a Medieval wedding. It's not something you can just walk into a bridal boutique and pick up. There's only one other book on the market (through amazon and her personal site) that sells this type of book (both in print and ebook format). So it's a niche I grabbed. Now, sales are okay and my wedding site as a whole pulls in a decent amount finally, however Medieval weddings isn't a "large" niche either.
I think the key to it all is to build several "niche" sites so that you always have income coming in from somewhere. Basically, 10 sites that make $100/month each = $1000. Of course, I expect a site to bring in more than that per month, but it's an example. However, you have to make those sites automated, so that you aren't spending hours and hours dealing with it either. Being chained to your computer isn't considered "freedom", which is why people work from home in the first place
Anyway, I hope this sparks some ideas on what you could do with the site. Lord knows, I've redesigned a few of my sites a few times already.