I agree that there is going to be a market for smaller bikes. I don't know if the Grom market has died off or it will come back. I myself welcome small bikes, many of my friends 30+ year riders have some displacement rides ,
they range from vtr250, Morni 3 1/2, Enfield Himalayan, and I ride a Puch 250 sgs. Big bikes to me only make sense for long distance riding. I have a 72 Guzzi Eldorado,  for a long distance.

Right now I await the new Enfield 650 Interceptor. Don't know if I will buy one but it seem to be a modern version of another bike I had the Benelli 650 Tornado.

Random thoughts:
Read recently that the big death group has changed from snot nosed kids on killer sport bikes to graybeards with money buying fast bikes after not riding in decades. It used to be if you stepped away form the industry for a bit, the bikes got a little faster. Now if you step away for decades, the bikes might have 4 times the HP of the ones you used to ride. And your reflexes are much worse.
Keith Code said that when he switched to the BMW S1000RR with all the fancy electronics (race ABS, traction control, etc), crashed rates dropped.
A bud bought an S1000RR and marveled at how controllable and safe it was. Ride it Balls Out into a turn, grab brakes with a death grip, lean over a bunch, and gas it. Said it was amazing and safe.
Then he crashed while racing overcooking a turn, spent $50K on a Medevac helicopter ride, and spent a LONG time recovering.
Can't imagine the bike companies make much money selling bikes that become obsolete in 3 years. And have insano development budgets.
Gotta figure that Triumph has made WAY more money on the Bonneville family than the sport bikes. Heavy, overbuilt, understressed, very slow to change, charge a premium price. And a bunch are made in Thailand. Compare the price and specs of a Bonnie and a 675 Street triple a few years ago. The triple gives Way more stuff for the same price as the twin.
But then again, there has always been the marketing theory that the race winners bring the customers into the showroom, even if all they do is buy the more pedestrian bike. Look at HD with flat track over the decades. Racing bikes with no connection to their street bikes, but instilling brand loyalty and giving them a 'winner' they can identify with.
More crazy numbers?
In 1976 Udo Geitl was given $150K to build three BMWs and win the inaugural Superbike championship. Which he did. Five years later he was crew chief for team Honda, with the same mission and result.. That year Honda spent $10.5 MILLION on the team. The amount to win a championship now is even more staggering.
Of course, there is huge amount of sponsorship money now. Back then they got a free parts and a few bucks. But, still, racing is crazy money.

jcstokes wrote on 12/22/18 at 10:01:21:



It’s a good thing I am well past middle age, gives me a much better chance of survival.  Especially since I ride a simple and relatively slow bike solo and a Sporty when my sepweetheart rides with me.

Ruttly wrote on 12/22/18 at 12:29:25:
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So true and yes, they are idiots!