As much as I might be loathe to admit it, motorcycling is very much a niche activity in my part of the world. Those of us who love it tend to be extremely passionate about it, but we're few and far between.
But as with any country you live in for all (or even most) of your life, it tends to skew your perceptions of things. You accept that the world is one way, until and unless you learn something that challenges that view. That's why, if you're ever able to spend time in other countries, you'll notice stark contrasts between them and your own that go a lot further than just the cuisine.
All this is to say, in a lot of places outside the US, smaller displacement bikes sell in absolutely massive quantities when compared to the sales volumes of larger displacement, premium machines. The margins might be slimmer per unit, but the sheer scale of volume simply can't be ignored.