These are all valid points guys. I like the idea of doing some F3's or F7's, as well as perhaps an E unit. They could get a lot of mileage out of those molds!
There is definitely a "growth" problem in the hobby. I am 34 years old, and I don't know anyone else my age in this area that is into O-Gauge. It's going to take some creative thinking on the part of the manufacturers in order to overcome the problem.
I think that the upper end of the market is going to shrink, as the older guys with the large established layouts start to die off. I know that sounds rather crude and harsh, but the truth is the truth. If MTH and Lionel want to grow the market, I think smaller and cheaper is where it's at. I also think it's a mistake to assume that you can start someone out with a Lionchief locomotive, and work them up to Legacy locos. I've spent a fair amount of time working/ hanging out at the local o-gauge store, and I can tell you that A LOT of people simply don't have the room or budget for the big stuff. You can demonstrate it and point out the awesome little details all you want, but they aren't going to buy it because they simply can't. The average joe has enough trouble making ends meet, much less paying for a $1,000.00 o-gauge train. Everybody is impressed with the MTH Premier and Lionel Legacy, but they just can't justify the expense.
Now, I think Lionel is on the right track with Lionchief Plus. The locos are reasonably detailed, they sound good and kids (or adults) can run the darn things anywhere. They are priced right as well. I think the sweet spot for most people is below $400 for a single locomotive. Perhaps $600 if you were talking a large Lionchief loco like an articulated.
Like I said previously, some of these folks have bought the Lionchief starter sets, and they are going to see the 4501 and 611 and 765, and they are going to want to have a model to run around their track. However, chances are, they are not going to have the space or the money for the scale stuff. Heck, why doesn't Lionel approach the Ft. Wayne Historical Society about selling an exclusive set via their on-line store and their commisary car? Perhaps they could do the same with the TVRM and 4501, as the Lionchief Mikado would be perfect for 4501.
Perhaps Lionel also needs to consider putting up a display in the big box stores that would include a video screen showcasing the Lionchief features. The folks that are buying these sets at a big box store, have probably never been to an o-gauge shop, and they have no idea what a fan driven smoke unit is, or what the sounds are.
I don't know what the ultimate answer is, but they are going to have to think outside the box to make any real headway,