With an ever aging user base for Leica, it makes sense to move the R system towards autofocus. At least that way they can continue to sell. While the purists will undoubtedly whine about the lack of tradition, do purists really buy that many Leicas?
In the mid to late 1990s Leica had a seemingly infinite selection of boutique M6 variations, most of which likely never even had a roll of film put through them. Now I see there is a new M8 Safari ... gack! This boutique camera crap is not going to keep Leica a viable company.
As to whether or not the S2 system will succeed, it will depend upon the small number of studios and professionals that see any advantage in using such a system. One aspect that might help them is that Leica are considering setting up some rental and lease support, which Leaf and PhaseOne have been able to successfully implement. I don't see rich enthusiasts buying these, though a few might go to such people.
Anyone wanting a medium format Leica should look into the ALPA 12 system. While it is not a rangefinder camera, and it is biased towards wide angle lenses, the quality is everything one would expect of a Leica. Consider if Leica tried to develop such a camera, in the face of vastly declined medium format sales: the result would be more expensive than an ALPA. Sure, the purists would welcome the endeavor, but again I doubt if many would buy one.
I like Leica, and I would like to see them continue. If it takes making lenses for Panasonic video cameras, or rebranding low cost Panasonics, then at least it keeps the company viable. I still want to get an M7 at some point, and I was grateful for the short time I got to use one, thanks to some Leica reps a few years ago. While Leica could go the way of Hasselblad (who were bought buy their largest distributer Shriro of Hong Kong), I would like to think that other business directions for them enable the M7 and MP to continue in production, and new lenses to appear. The worse possibility I think is the Leica brand going
only onto other cameras.
Ciao!
Gordon Moat Photography