You don't think there would be an equally enthusiastic demographic at a quarter or less of Leica's price range? I submit that half the reason many people go with Fuji cameras is to approximate the look and feel of a rangefinder, and even though they are very different things, I bet a lot of people would shell out a grand to be able to have something just like the street masters used.
I'm sure there'd be a market, but I doubt that it'd be possible to provide a satisfying product, at least mid- to long-term. Rangefinders are expensive to make and expensive to maintain - so, while I'd say people would buy a cheap-ish rangefinder, they'd get what they pay for. Even Leica's top-of-the-line models need maintenance. Cheaper models would mean less reliability. It should be doable, but I'm doubtful as to what the resulting cameras would be like. I don't think it's doable (at today's production costs) for under $2000, if that.
That said, it'd be really great to have something less expensive available, if only to have a more affordable entry-point into RF shooting. I took ages to discover Leica mainly because of the cost of access that seemed prohibitive at the time - but I'd have saved tons of money if I had gone for M mount RFs sooner (I don't think I'd own any
gear, for a start - in spite of all its merits, it was always a substitue for the real thing, starting with the RF-inspired body shape of the Olympus E-PM1). It's what I like best by far - even though I have to say that having another system available that is zoom-friendly makes it easier to enjoy the RFs.
RF look-alikes aren't RFs, whatever anyone says. The Fuji X-E line certainly aren't, and neither is the Olympus PEN-F, Panasonic GX line, Sony A6*** or Leica CL (the current model). They're EVF cameras that happen to have a sleek body design with (mostly) small and lower-spec'd EVFs as a penalty (the CL being the notable exception here - its EVF is gorgeous). That's not to say any of those cameras are bad - some are tremendous value for money, even. Still, only Fuji has RF style cameras that come close to working like rangefinders; those are the X-Pro series and the X100 series. But having tried both, the experience is still completely different (and for me, not to my taste). It's nice in its own way, and certainly great for those who love that style, but as a RF experience, it's not much above wannabe ...
I think the best bet for someone who'd like to try a digital rangefinder would be to snatch up a M8. I couldn't be happier with mine - I use it as an EDC with impunity, and paired with the pretty affordable Voigtländer 28mm f/2 Ultron, it's a very nice shooter that offers the full RF experience (minus the operational speed you get with more modern bodies, starting with the M 240 - just ...). It teaches you all you need to know - and you can only upgrade from there, anyway (or else look for the elusive Epson RD-1).
So, a M 240 based "simplified" entry model (i.e. the new M-E) makes perfect sense in my book, but for those with tighter budgets, the M8 is a pretty decent offer that gets you all you need to dip your toe in ...
M.