Beginning with the acquisition of old Marx tooling in 1978 and prior to 1999, Maury Klein did focus on the low-cost end of the toy train market, such as with K-Line’s S-2 switcher. It gave hobbyists an option.
Then, when he started offering scale locomotives and improved scale rolling stock in 2000, the prices still represented a relative bargain. The $500 scale Hudson by K-Line was introduced at the same time Lionel and MTH were selling them for $1,000.
His low-pricing may have contributed to his financial struggle and bankruptcy later, after Lionel sued his company for industrial espionage, but for nearly a half-decade Klein was a major player in the O gauge toy train world.
I have a nice mix of K-Line stuff, but I wish I had obtained more during that period. I, too, wish K-Line was still around.
Much of its tooling remains in the hands of Kader, which ended up with the equipment as a result of its acquisition of Sanda Kan (which produced trains for K-Line and was a secured creditor at the time of K-Line’s bankruptcy in 2005 and subsequently was largely paid off with the tooling and unsold inventory).