EVERYTHING in the 1980's-1990's Lionel/Flyer line was aimed at the collector's market. The cancelled 1988 Hudsons had an MSRP of $450! If I remember correctly, all that the Hudsons were to have was an electronic reverse unit and smoke.
Take a look at the new Williams by Bachmann prices, they're getting up there too. The 2046 small Hudson reproduction now lists for $430 and a 4 car Madison set for $300.
Thanks for that price on the 1988 Hudson. I did some rough estimates: $450 in 1988 would be $875 today (and the Northern MSRP was only $450 in 2006). Also, 2046 plus Madison set converts to a 1988 price of $225 + $150, making it seem much more reasonable. There are an awful lot of 2046s & 646s out there, but operators keep buying more.