BC1989: I agree with you, On30 can be found with sound and DCC, and if smoke can fit in HO, why not On30? Seems like a market/business opportunity for someone! If I could have a wish, I would wish for Lionel to introduce On30 with LionChief+ sound/smoke/speed-control/bluetooth. Perhaps they could partner with Bachmann to keep development costs down.
Bachmann's On30 line is beautiful, well-detailed, and very smooth running! My previous layout had a small On30 line in the mountains, and my enthusiasm persuaded my brother in Denver to change from N-gauge to On30. He now has done a couple layouts in On30, including one on display and operating for the public at the "Big-Time" adult amusement/play center in Denver (adult-size activities including adult-size "Big-Wheel" trikes, trampolines and etc.).
I would have thought On30 would be a natural fit with O-gauge rather than Lionel's re-entrance into HO. --Ken