First and foremost, it's a different business model. Leica is not like Nikon and Canon, Leica is like Alpa and Gandolfi.
Rolls Royce won't produce a Silver Shopper just because VW sells some low-end models. The last time Leica tried to make a medium-end camera compatible with their high-end models, it came around and bit them in the rear, because it cannibalized their sale of the latter. They got rid of that business model for good and let the medium-end stuff be handled by Panasonic.
Above the M9 is the S2, the closest Leica has in cameras for a professional market.
Anyway, basically you have a company that sells the smallest full frame 35mm digital camera in the world, a high-end product for $7000. You propose that they produce an even smaller version of it for $4000, after all they can save on the display which you don't need. However, what makes the M9 expensive is not the display (displays are a dime a dozen, there's a high-res display in every better telephone and $500 compact camera). What makes it expensive, apart from the full frame sensor, is the aggregated development cost, spread out across a relatively low number of units, of cramming this sensor into a workable camera package with a small form factor - the only way of making cameras cheaper is selling more of them.
So, proposing that they build a new one that's even smaller for half the money for what is even a more minuscule photographic niche than what's already targeted by the M9 is not realistic. You propose to make it a medium-end camera, but where's the "medium" aspect? No display, netting you $50 or so per camera? A lower-resolution sensor that nets you basically not much more (because what makes sensors expensive is the area, not the pixel count? And how many man-years of German engineers do you have to put into a new full frame camera? If you save $50 on the display and then sell 2000 pieces, how many engineers does it buy you? Does it earn you more than you lose by the dropping dollar? A back-of-the-envelope calculation will show that there is no way to recoup the development cost. And doing all that for something that cannibalizes your sales of an existing camera that is on a good way to recouping its development costs and nets you an extra $3000 more per unit?
It might be done at 1.3x crop, but then you guys will all be up in arms and nobody will buy it. So it's a lose-lose proposition either way.
In other words, it's wishful thinking.