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In the late 70s/early 80s 500cc was going the same way - diminishing grids, lack of funding, not enough manufacturers, and no privateers because old bikes don't win. Then Yamaha were persuaded to sell factory spec engines to private teams at competitive prices, which saw the private teams using their own equipment. At the time it bumped up the numbers a lot, and this would happen now too, if the manufacturers weren't so stubborn as to sell reduced spec machines to customers, or bikes with little support.
They're cutting off their nose to spite their face.