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Maybe not "gave up," but rather they've gotten complacent, especially with the Tacoma. The new one is basically the same basic design they've been using for over a decade now, the big difference is that they're using a crossover derived 3.5l V6 (I question whether that is a step forward or a step backwards for truck uses) instead of the the 4.0L v6. Meanwhile you've got Chevy putting out a diesel Colorado and a Ford Ranger (with a rumored diesel option) right around the corner.
Think we are saying the same thing just using different wordage. gave up, complacent, resting on laurels, etc. The rest of their vehicle lineup keeps on advancing. Their US trucks have become stale, they do sell every last one of them, why they haven't invested much into them is my guess. Not sure how much longer that will last with the midsize market heating up again.
The diesel Colorado looks good on paper and real world accounts, prices are becoming reasonable. Seeing them in the low $30K's. Hopefully the diesel scandals don't kill these things before they get off the ground. We are finally getting small diesels, the government might just ruin it.