That makes a lot of sense. But I wonder if this leads to a potential vicious cycle where the market gets smaller precisely because of the abnormal cost and the cost keeps skyrocketing because only a small clique of photographers would buy it.
Imagine if Nikon made only the F6 (well, absurdly that's what it does now!!, but let's keep the whole digital thing out of this). I suspect if the F6 or F5 were the only bodies, Nikon SLRs wouldn't be that popular. A few dedicated advanced amateurs and professionals would buy it, but it would be a niche market and maybe the cameras would cost even more than they do now. But what keeps Nikon going is not the F5/6 but the N55 to N80 and beyond to the F100. When I was looking for a first SLR I bought the N80 because it was a camera I could afford from a brand I could trust. The N80 was full of compromises on the F6's quality, but an average camera in my hands is way better than a fantastic camera in the showroom! So I bought the N80 and more importantly bought into the F-mount and bought into the SLR system - for 99% of users, this is what they will stay with for ever.
Now why didn't I buy a Leica? Simple - Leica only seemed to make an F6 (well M7, but you get my point) for $3495. Are you kidding me? Here I was not knowing which ring to turn to focus and unsure if I'll even like photography. So I don't buy a Leica. By the time I learn to appreciate things like retrofocus, and mirror-slap I already have a tonne of Nikon gear. I'd say out of a hundred photographers who find them in this situation, only one might take the plunge to own an RF along with their SLR system.
If a cheap body was available from a major manufacturer that would take Leica lenses then people might actually consider it. Cosina is not the answer, people need to know about it and they know and trust Canonikon - and Leica too. So, what I am saying is, a Leica N80 would be nice - may be without the legendary precision and not quite built to last a century - but hey, my Olympus XA is still chugging along fine for $50!
Okay, please don't flame me as a Leica heretic. I am just trying to figure out how they function because at times they look hell bent on making themselves extinct. For me personally, I simply can't afford either a Leica or an F6 - so that's settled

- but I do appreciate rangefinders and their advantages so I use every fixed lens rangefinder I can get my hands on. In fact my SLR is almost strictly my welded-to-the-tripod camera. For all handholding I use RFs.
Anyway, end of rant. When I'm rich and famous, I will buy a Leica - promise!

-Anupam