If it was 2000 I'd buy one. A lot of people would, I guess. But how will they ever be able to make one for that money?
They can have Panasonic make it for them, as they are already making the Leica digital point and shoots.
What if they designed one around a DX format sensor (a lot cheaper and easier than a 1.3 crop or FF) with a trio of DX Summarits, equivalent to 28. 50, 90mm?
No, I disagree. Minimal R&D should be used in coming out with the cheaper camera. Use the current CCD, maybe improve/economize its circuitry to reduce production cost, put it in a plastic body and have Panasonic's factory put it out. Make it plastic. Keep the M mount, of course and put the red dot on it.
By doing this they will expand the user base of the current M mount lenses (which of course needs to be full frame to work with film cameras which they still sell -- Leica is not big enough to go the Nikon route with two lens lines) and with these new adopters of the M system via the cheap digital M, have the market ready for the M9.
The only hitch I see is Panasonic's reluctance to get involved in any interchangeable lens digital camera that isn't 4/3 system, which Panasonic is pushing, of course.
IMO the upgrade program is a real waste of their human resources and keeps the digital M system as an exclusive, expensive club with long repair/turnaround times. You would never see Canon going this route with their $8000 1Ds series... replacing the sensor, etc. And Canon is a much bigger company with much greater human resources!
Leica can only make more money by moving boxes, ie, selling cameras. Make a cheap digital M, move boxes, expand user base, sell lenses. I also have no problem with lenses being made outside of Germany. As long as they are good. That's not a hard task, look at Voigtlander's success.
Again, I am a current M8 user.