I still think there's opportunity with the scale side if things. A decent s scale loco is still cheaper than an o scale one. That's one of the reasons I changed from N to S instead of O. The scale SHS switchers and rolling stock, even second hand ones were cheaper than the scale Atlas ones. That and I could build a larger layout in the space.
Anyway, back the the original topic. If someone like MTH really wants to expand the scale, I would offer a ready to run, rechargable battery powered, radio controlled locomotive. Just think, no track wiring, no worries about dirt, no real issues with running more than one train at a time.
The current state of S kind of reminds me of the state of N when I first started in model railroading many moons ago. There wasn't a whole lot of variety, and what was available that was decent running and looking was expensive. It was pretty much Trix engines and MicroTrains or Atlas rolling stock .
S is a perfect size for me, but I really enjoy kitbashing and scratchbuilding. That approach is not everyone's cup o' tea.
