Crossing Genres

I'm writing a paranormal historical. It isn't something I see on the shelves too often. There's the LoveSpell line by Dorchester but I've never been too fond of them. Occasionally you'll see one, but it isn't as established in the genre as paranormal is in contemporary.

Do you think there is room? Paranormal is hot, no doubt about it. Could it be the subgenre to enliven the historical market? Susan Squires seems to be successful with her Regency vampire stories. Do you think it could be the next wave?

And what about historical romantic suspense? There is usually a "suspense" plot to historicals, but they are generally just window dressing for the hero and heroine. The plots provide conflicts but rarely create any real interest. And yet there are historical mystery writers out there as well. Is it an area to explore?

I do think we will see more historical erotica as erotica has gone more mainstream. Lisa Valdez's Passion definitely crosses the line into eroticism. Historicals have always been spicy, I think it isn't a big jump to move towards erotica.

What do you think? Will we see the historical genre grow with other subgenres? Do you think it needs to or is the readership loyal to only a certain style, accepting only anomalies to the genre?