Is it possible that it does have a lot to to do with marketing etc? Because it seems to me that if people didn't want an XT700, and if marketing research didn't warrant a production go-ahead order, then there's no way Yamaha would be building this bike.

It also makes business sense if the same basic 700 engine can be used to afford economy of scale. And I wonder if the current XT sales are where Yamaha want them to be? If not, the factory will simply move on to where they think the money is.

Just my thoughts for what they're worth.