Marc, if a Mercedes C-Class cost twice the price of a similar Volkswagen, except it had a significantly less powerful engine, your comparison would more closely resemble the X Vario. Yes, a C-Class cost more than a VW (or Toyota, or whichever mass-market brand you care to name), but (1) this extra cost is much, much less than what Leica are asking, and (b), while each of us have preferences in "what is best-in-class", it lacks in no form of performance in the same way as the speed of the XV zoom. The car industry also tried luxo-rebadging of mass market cars, like Cadillac branding of Opel cars. It didn't work out at all.
The reason I mentioned game-changing IQ is in order to make up for a very weak performance in lens speed. In my opinion Leica would have sold more 3000$/€+ X Varios with a f:2.8-f:4.0 zoom than what they chose to sell. But that is the opinion of just one person.
Again, IMO, Leica is not out to "directly" compete head-to-head with other brands ... but instead offer variations on their own Marque.
So, the Mercedes C class analogy I used was more about those intent on a Mercedes, but can't afford an E, or especially a S class. People are willing to put up with less room, less power, less standard features, less luxury to get the marquis, and what it stands for to them ... personified by the prominent tri-star grill on the C class vehicles.
It is the brand marquis that sets the purchase criteria ... not competitive brands that may offer more, but do not carry the same brand cache.
Your lux badging of mass market cars is directionally more like rebadging Panasonic in terms of an analogy. IMO, this camera is different, and reflects Leica's more recent marketing strategy of brand consolidation. Just take a moment to view the marketing for this camera that prominently touts phrases like these:
"The art of engineering, made in Germany"
"Leica M as role model."
Leica Camera AG - Photography - X Vario
Couple that with the X Vario tactile experience in a Leica boutique at some toni location, surrounded by Leica heritage, Leica Ms, S systems and a complimentary cappuccino ... and there you have it ... a sale.
People with the "wants and gimmes" but not the means, can leave with something of the marquis in hand, because the Leica customer service associate has something to sell them.
Again, it is marketing 101.
- Marc