If you check the street prices, these simple HO models are being offered at close to 50% less costly than most offered similar products. I think the attraction will be substantial discounts available at some dealers, and much less expensive price points for additional rolling stock than currently available.
May not be a slam dunk, but it's pretty early to be dismissing the market possibilities. Lionel is the higher priced producer in three rail in many instances, but will potentially be the lowest price producer in HO for some products. Past performance doesn't dictate future events, as they say in the stock market 
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