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Maybe its not quite so ridiculous? The 250 is making a comeback in these austere times, not just here in the UK, but also in the growing markets where the small bike is still king. India, Indonesia, China etc. are far more valuable growth markets, and they buys masses of scooters and small capacity bikes, & they are becoming more affluent consumers.
Instead of just saying that Uncle Carmelo is a loon, how about you come up with a solution (or at least a few solid ideas) that hold water of your own and enlighten us eh?