This is pretty simple. The market shrunk over a period of 20 years. It's now pretty much leveled off and this is the new real market size for high end audio products. This new smaller market size is not big enough to support brick and mortar stores except in a very few specific atypical cities (LA, NYC for example). The audio industry has been in denial of this because the home theater boom allowed them to ignore the obvious market shift. Now, even that has mostly dried up. The old larger market size is never coming back as those dollars are now owned by many other industries. However, this new smaller market size IS big enough to keep companies like Bryston in business, but only the companies smart enough to adapt to the new market will survive. You absolutely must market via the internet to reach the very geographically diverse customers. You also must provide new marketing strategies that are mail order friendly like 30 day home trials. You must lower prices as the 50% retail markup is inappropriate for internet sales. You must allow free market pricing for authorized internet dealers. That's the future whether you like it or not.
Bravo! What a cogent and intelligent response to James' question. Whether anyone likes it or not, this is the reality. The glory days of high-end audio as we once knew it are over.
I am a perfect example of why the high-end customer base has eroded. Although I have been 50+ years in this hobby (and have spent a ton of money), about 10 years ago I decided to just be satisfied with what I have. And it has stuck. Haven't made a change/improvement in anything in that time. Though I remain avidly interested in audio and keep up with it via forums like this (and I do absolutely love and respect my Bryston equipment), I will probably never again make a high-end audio purchase.
And more than likely, there is no younger guy to take my place. Because of the hype, pricing, or whatever young people are simply not attracted to high-end audio as we have known it. It is telling that practically to a person, all the young people I know (college and high-school age) consider Bose to be the iconic brand for good sound. And they want formats (MP3, etc.) that provide them quick, convenient and affordable access to their music.
And in spite of the huffing and puffing of Fremer et. al. about the "resurgence" of vinyl, it is and will remain a miniscule niche format with no real impact on the future of audio.
I now live in an area with no B&M dealers (even the mid-fi shops in my city have all gone out of business). So even it I were to buy more stuff, I would either have to travel hundreds of miles to find dealers or buy on the Internet, which is what I would choose. And I would demand pricing that didn't include huge dealer markups and 30-day audition policies.
I sincerely hope and pray that the companies I admire (like Bryston) will find their way through all this and prosper.
Happy listening.