Actually, it's a very smart marketing ploy. Here in Oz we used to have a 250cc max capacity rule for learner-riders, but the rules were changed for much fairer max HP rating, which allows guys (and gals) to buy bigger first bikes that they don't necessarily have to sell to move on to a bigger capacity bike once they get their full license, like they did before.
LAMS (Learner Approved Motorcycle Scheme) bikes give new riders a greater choice of bikes, but up until now, Harley Davidson has not had a bike that was LAMS approved, so the new 500 (The "Lamster" as I've decided it will be known) will be very attractive to new riders who don't want to buy a Jap bike, and will eventually move on to a larger Harley.
The new Lamsters will be made in both the US and India, and it sucks that the Oz market will only get the Indian made version, and considering that the bikes will be so much cheaper to produce in India than they will be in the US, they should be considerably cheaper, but that won't be the case, they'll be around 30% more expensive in Oz than the US manufactured Lamsters will be in the US, and that sucks.
If I was a cashed up first time rider, I'd buy one, but I'd have to ditch that pipe and put something smaller and louder on it. I showed the youtube vid to both of my sons, and they both liked it, so if that's an indication of how well it'll be received in the "20-something" demographic, I think Harley will sell lots. Cheers, Terry.