1. YES. The wolves are closing in on the standard-bearer. BUT, in all fairness, when you have a standard-bearer that is careful and very concerned about exhaustive research and ultimate perfection, this is the norm. The wolves only have to follow the trail. The standard-bearer has to blaze it.
2. YES. In quality, and reliability, they are still the benchmark, but Surefire's speed-of-innovation will bury them if they are not careful.
We need a 200-lumen 3-cell LED U3 right now! Push it PK!! (And make level 1 low enough to run 80-100 hours (.7-1.0 lumens, like the L1). Your present "low" level is a little too bright for close work or runtime.
We need an A4 (four colors) right now! The K2 is fine but I have an observation to make. If we had an A4 with a red, blue, and green LED in the head like the A2; then a selector ring like the U2 to select one of FOUR colors (white being the last), you could use the standard-design tailcap for a low/high intensity setting like the L1/L2, have unbelievable runtimes with a selectable intensity to a single LED bulb, and still have your regulated white pencil-beam, which would now be two-stage. Frost the damn bulbs to get rid of the artifacts. This eliminates the need for a 1.13" F04. You now have a regulated, long-runtime, "do-anything" EDC. The K2 is fine, but "override white, no matter what" is a military and limiting design criteria.
3. NO. Think Henry Ford, not Ferrari. There are 280 million civilians, 1 million military personnel in this country alone. If you build it, they will come. If you are not very careful, your prices will drive most of your customers away. Build something very useful, very reliable, and very fairly priced, AND PUT ONE IN EVERY DAMN HOME IN THE WORLD!!!
Just thinking out loud.