Would it help the dealership network? Absolutely.....but too many people put the Manufacturer and the Dealership arguments into the same argument and that is where the biggest mistake is made.
The thing about this issue is that Victory doesn't even need to get into the weeds with the likes of the big 4 (Yamaha, Honda, Kawasaki, Suzuki) to make in-roads with the beginning rider. They could come out with an 1100-1300 cc bike on the Vegas/Kingpin platform for around $10K and make an impact (vs $7,500-8,500). The big 4 are forced to push price, price, price because, much like H-D, they are fueling a huge market-share monster.
Victory would benefit from an entry level bike but they are in the enviable position of not needing it to keep the lights on.....and if you were the guy who was writing the checks, or even more important, the guy who has several hundreds of family's financial futures in your hands do you want to go down that road in this economy?
The big question is CAN they build a bare-bones 1100 cc bike for $10K? Its not as easy of a question as people think. The reason why the big 4 and H-D can produce at that price point is pure economies of scale and Victory has shown they have no interest in walking that fine line in today's market.