Good to see that you're agreeing with me Lammy, and to be honest, I don't care why Harley is still in business, I'm just glad that they are. Too many motorcycle manufacturers went under as a result of the "Japanese Invasion" in the early 1970's, and while that was fair enough, (the Jap bikes were far superior technically) it's still a shame, as it reduced the choices that we motorcyclists have open to us. (possibly another reason that Harley did so well, picking up business from bikers who wouldn't be seen dead on a "rice burner")
Happily for me, Triumph was reborn in the early 1990's and are doing quite well for a small manufacturer, competing against the huge resources available to their Japanese competitors. Same goes for Ducati, who make a fine bike, but have struggled to continue, knowing that whatever they build this season will be blatantly copied by the Jap manufacturers next season, who are still largely imitators, not innovators.
Bimota went bust because buyers couldn't see much point in buying bikes that were already powered by Jap engines, and didn't handle or stop any better than the bikes the engines came out of. Once again, the Jap manufacturers just "reverse-engineered" a Bimota SB6 and used that information for the GSXR1000. Morally pretty weak, but the Jap manufacturers have never been big on morals.
While the "America, Fcuk Yeah" mentality is certainly a factor, Harley could probably survive without American sales, such is their popularity worldwide. Over here in Oz, where a lot of bikers are sick of the Japanese "Sportsbike, Land Barge or Harley Wannabe" choices, are enjoying the wide network of Harley dealerships offering an excellent parts and accessory support network for Harley owners, in many cases, spare parts for a Harley Fatboy are easier to find (and cheaper to buy) than parts for a Suzuki Hayabusa.
At the same time, entry level Harleys (Sportsters) are competetively priced, so prospective Harley owners don't need to shell out a lot of money to experience the marque, and if they decide to progress to a bigger Harley, trade in values are such that they won't lose out anywhere as much as a dissafected Jap cruiser owner would. Smart marketing? Definitely, if the Jap manufacturers displayed the same sort of respect for their buyers as Harley does, instead of their "thanks for the money, now p1ss off" attitude, they'd instill a lot more "brand loyalty" in their customers. Cheers, Terry.