i would think hand quilting would be more expensive than hand quilting---if they won't pay for machine quilting would they pay for hand quilting? i think you need to check around the local shops- guild, sewing groups and see if there would be more of a demand.
around here the hand-quilter's charge 3 1/2 cents a square inch for quilting- which is a bit more expensive than most of the long-arm quilters in the area...that being said- here there is a market for it- the hand quilters i know stay busy- of course it takes a lot longer to hand quilt a quilt than to machine quilt it.