The bigger issue, I think, is that Paradigm has a much harder hill to climb scaling up than it is to scale down in large part due to brand perception. I shook my head when VW launched the $100,000 Phaeton and new it would fail from the get go. The Phaeton was actually an impressive car, but are you gonna drop 100 grand on a Volkswagen when you could have a BMW, Porsche, Mercedes, etc.? It’s precisely why Toyota, Nissan, and Honda created Lexus, Infiniti, and Acura — they knew perception matters, a lot.
The benefit to scaling up might be that as higher-volume manufacturers they can possibly leverage their cost advantages in creating higher-level products theoretically giving them even higher margins selling high-end products, but it doesn’t matter if people won’t buy them in sufficient numbers.
Case in point, MA’s top speakers are by all accounts fantastic and a great bargain for the performance they deliver, but they don’t get near the attention of the Wilsons, Magicos, etc. at their price points. I believe if MA launched a luxury division with a nice new name and raised their prices their top speakers would be getting a lot more interest and exposure. But, all else being equal and speaking from a manufacturer’s perspective, I’d certainly rather be in the position of scaling down as it’s a hugely easier path than going the other way. Not sure this answers anything, but anyway...