Well, most of the history of Lionel is TOY trains, even though terms like "realism" and "scale proportions" were used in Lionel catalogs. Even today, Ryan Kunkle of Lionel, said at the YORK show that even though the traditional trains don't get the attention that the scale products do, it is the traditional starter set line that keeps the company in business.
The scale product line is a new thing and I'm sure the folks at Lionel as well as the other companies thought, "Hey let's try this. This hasn't been done before." And the new scale product realism has helped pull some away from HO or other scales, which was probably part of the idea.
On the other hand, just how big is the scale market? It's certainly NOT taking over as some would suggest. We see announced product runs of scale proportioned products that don't even make one hundred. Lionel has said a run of 3,000 scale items is an exceptionally large production run. Whereas the same number for a traditional line starter set is a small run.
If anyone watched the TrainWorld live stream with Mike Wolf, he said his single best selling item of the year was one of the Christmas cars. And he said all of his Christmas themed cars were very strong sellers. Now you'd think with what we read here on this forum, that the most popular, best selling train would be one of realism, that was high-end scale with 100% proportional accuracy with accurate details and an exact paint scheme to boot. NOT a flat car with Santa and the reindeer on it.
But as Jerry Calabrese once said, Lionel can ill-afford to abandon any one segment of their customer base. And I do believe that to be true, not only for Lionel, but MTH too.
So the problem is not the train companies (although they do have their own difficulties). The problem is us: Every one has an opinion, but in today's self-entitled, electronically connected world, someone's opinion isn't valid unless it matches yours, which then makes it "correct."
We all should be thankful for the multitude of choices that are already available in this hobby, instead of complaining about what hasn't been made yet. Make your product suggestion and be done with it. One hundred product suggestions coming from the same one person doesn't carry the weight of 100 different people suggesting one single product.
I'll close with this story. I was at a train show looking over the Ross 3-rail track and met Steve Ross. He asked if he could help me, and I told him I was strictly a 027 guy, but was curious about his product line. And he told me "thank you." Surprised, I asked him for what?
And he told me that even though I wasn't buying scale products, I was helping to keep Lionel going strong and stay in business. And with Lionel doing well, that benefits his company. I liked his attitude and wish more people in the hobby had that way of thinking. If I was a scale guy, I'd seriously consider the Ross track line just because I liked his attitude.