They should just forget the S2 system and concentrate on producing and selling M9s and X1 and make money.
My feeling that the S2 project is going nowhere. I am sure it appeals to some people (it does to me too) but how many potential customers for the S2 are out there?
They have a good product with high demand and cant deliver. Sad.
There are some more considerations in all this:
1) It was important that they developed something digital from the scratch, in order to get the experience themselves in this area, which a successful camera company needs today - PERIOD. So this was very long overdue and finally they got there. But if the S2 was the right way to start see below ....
2) It is highly questionable if the S system format and all the glass and cameras following that line were/are the right thing to do. Just to invent something new in order to kind of have not to fight in other camps (35mm DSLR and MFDBs) is obviously not the best thing to do, because sitting somewhere in the middle they get pressure now from both sides. Maybe designing and building a true MF system and starting with the 60MP Dalsa sensor would have been the better solution and showing how compact and advanced they could have built this counterpart to existing systems.
3) It is not always (actually very seldom or never) successful to invent new standards and formats. Think back about the 110 and APSC film formats, they actually never made it to a huge success. And lately 4/3, although the micro FT seems to become a real killer concept, but this is mainly because of the compactness in combination with a reasonably large sensor and the large volumes they can build on based of the standard FT format.
4) They should have concentrated more on building the M9 and also on higher volume manufacturing of this camera and develop their flaghip model system (S) more in the background. No need to actually hurry up in the MF arena, as they could easily now surprise with a 60MP S camera and lenses. And money would come from a mature and FF M system.
5) They were on the 4/3 train and stopped there. In my opinion they should have never jumped on this train like that but as they were already on they should have continued with the Micro 4/3 path, as this one is becoming a great success as we all can see. And frankly, having such a M-FT camera from Leica (I mean a really Leica built and developed camera) instead of their X1 would have been highly accepted by the market and generate another cash flow for them - good for pumping parts of this money into their flagship products.
But this way around - announcing the S System so long ahead of market introduction and finally delay the product till the camera is almost outdated from the sensor capabilities when it arrives on the dealer shelfs is for sure not the optimal way.
My 2c.