One thing I noticed after cycling across North America on a $500 hybrid and then Colombia on a $200 utility bike was that there is a wildly different class of cyclist that rides with computers and carbon fiber and shiny jerseys... They were as baffled by my setup as I was by theirs. It's almost an entirely different category of transportation. Or perhaps it isn't so much a form of transportation for them, it's a hobby - they often drive their bikes to the place they want to ride instead of just riding the in-between.

I imagine there is room to cater to both types of cyclist. Perhaps it was a self-selecting group for me, but I found every mechanic I visited on the road to be most busy with repairs of low-tech gear. It seems to me that low-tech bikes will continue to make up the long tail for many years to come, even if catering to those customers is less lucrative.