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It is not a huge mistake... in fact i really doubt the races in Moto2 will be close like what we seen last year should open engine formula is adapted. Just look at WSS for the best example - where are other manufacturers when two Hondas are battling at the front? Only Kawasaki occasionally show some threat. Yamaha have no official entry, and where is Suzuki?
Engineering-wise, it is much harder to maintain parity of multi-cylinder engines compared to singles - just look at F1 and MotoGP, even WSBK for example - hence why Moto3 is open to all manufacturers. By eliminating exotic items like pneumatic valves to name a few, anyone with decent engine/chassis technology can afford to enter at small budget and still can be competitive.
It will be as good as 125... mark my words.