the following is based on my personal experience so i will be more opinionated than usual:
it's not that the Leicas are too expensive, it's that they are not really better than their $30 SLR competition, like the 1970/80s manual focus cameras by Nikon, Minolta, or Olympus. For example, my Nikon FG was only $30 and has lasted almost 30 years and still perfect, with zero maintenance. with SLRs, you can focus so much easier, and you actually know what you're going to get, you can focus much closer and use a wider assortment of lenses. the film is actually easy to load. and the lenses cheap. leica does make better prime lenses now than Nikon since Nikon sort of abandoned fast primes, but now Zeiss is in the game making really nice prime lenses for Nikon SLR system. there's a reason why professionals in the 1960s started going from rangefinders to SLRs en masse, even though the SLRs were bigger and heavier. my FG is just as small as a Leica though, as are the Olympus SLRs.
why so much money for outdated technology? they should at least build a better viewfinder and film loader. more modern ergonomics, matrix metering for slide film, a wireless flash system like Nikon's CLS, the list goes on. they can keep the M7 for the fans, but most people just wants to take pictures without the camera getting in the way, so why should a typical photographer even consider going Leica? It's like buying an expensive mechanical watch when a $10 quartz watch does the job better in every technical way.
leicas are popular with street photographers but often such people get mobbed taking pictures in the cities and get their leicas stolen. besides, the US Government recently banned taking pictures of public places anyway.
for what reasons are Leicas technically better than say a Bessa, or the Zeiss Ikon, or the even cheaper SLR competition? To me Leicas are like toy cameras to play with, but I would pick an SLR for serious work. I would pay maybe $30 for the M7. SLRs are much more fun to shoot with their big what-you-see-is-what-you-get viewfinders, and make a nice clang! sound when you snap a picture.