I've got a feeling that if we were in charge of American Honda during their horrific drop in sales since 2009, we might also make the decision to produce a motorcycle that will appeal specifically to people who don't currently ride. It's not meant to be cross shopped with KTMs and and Husabergs and Betas (and maybe not even Versi and Wee Stroms); I believe it's more meant as a fun alternative to a used Toyota Corolla. Whether it succeeds in finding new and returning riders is yet to be seen, but my guess is that the fact that most of us with rorty bikes and much experience view it as lame won't surprise any of the people who designed it.
This is just my humble opinion, but I think the road tests coming out now are cutting the bike considerable slack by taking the same perspective.
While I see you're point, there is no reason that they can't do both....this is a company that builds private jets...and $600/month lease
only hydrogen fuel cell cars. Comparatively speaking, motos are very cheap to manufacture.
Good thing there are companies out there still offering models for the hard core rider. And bringing back 2-strokes, perhaps if Honda still had offered their 2 Strokes MX bikes they wouldn't of taken such a dive. Or something with a bit more excitement, their whole line is rather bland. KTM is strong, Gas Gas is growing, Beta is introducing a 2T enduro, OSSA is coming back, TM's have a great line up, etc ....all the while with a week Euro economy. They see the need for low maintenance 2-Strokes for the core rider.
The old Honda's guy are wishing they would return to their roots, but have to look elsewhere, perhaps why these smaller companies are doing well.
I would like to have a Honda, as the local shop here is awesome, however there is really nothing in their current lineup that I like, and many would agree with me.
Perhaps as you suggested, Honda's watered down models will bring more people into the sport, only time will tell.
There is rumor floating around that Honda has a direct injection clean burning 2-Stroke coming down the pike, but with the current offerings
they have...I highly doubt it.