When googling around  to get a feel for the market (Toronto), I'm getting the following impression:

BA looks like one of those positions where the person has to be a subject matter expert in a particular business and no one can break in to a new business area, a lot like the PM has to be a subject matter expert, which is not the function of a PM, but that doesn't stop it from being a requirement in computerized application screening.

What I'm seeing "out there" is a confusion about what a business analyst is and how far their function should go. I'm seeing Business Analyst vs Business Systems Analyst vs Systems Analyst vs Business Analytics. These terms seem to be tossed around like promises on the campaign trail.

Suppose I do business analysis in a gov environment (which limits my market experience right there), if I get my CBAP, I think I would still be marginalized by the market and unable to branch out into other business environments as an independent consultant.

What's your read?

From my experience in Canada I agree with Perry's assessment that titles and actual job duties vary greatly across organizations (and even within organizations) and industries. If you want to perform actual business analysis then you need to really look at the job description and look beyond the typical BA/BSA/Business Analytics titles for opportunities that involve business analysis activities. That could mean getting into market research, product design, product manager and customer service/sales roles. 

Domain experience may be emphasized by some organizations; if there's a particular organization or industry you wish to work for long term then it is worthwhile to develop that domain expertise through other roles first then transition into a BA role. 

If you're looking to be an independent consultant then the job titles you are given for any particular role is irrelevant. You need to show them you can do whatever they need done effectively and with little hand-holding. Satisfied customers (whether they are former employers or clients) that are willing to say how amazing you are will trump any credentials or certifications. If that's the route you want to take, start looking for part-time or short-term engagements that will allow you to build up your portfolio. Start networking and look for smaller organizations that could use some business analysis for a specific project. Take on projects that involve business analysis + something else you're good at; when you're looking for longer engagements highlight the business analysis work you did.

Another avenue is to look to be hired by a bigger Management Consulting firm (Deloitte, McKinsey, etc.). You will be doing business analysis by another name and have a pretty good support network, infrastructure and learning tools to get started. When you're ready to go independent they are a great name to have on your resume and will instantly give you credibility.