Could they do it - YES. Will they do it-- hummm ????
Is there a market -yes but how big and at what cost ? Light is also made possible by material technology that comes at a price. I think AWD is out as well as big tanks,brakes,fairings,instruments beyond the basics, and other little things we still want in the light weight bike. If they built it I would want to buy it , but it also has to fit a budget.
People mention wet motor instead of dry sump, I thought the reasons for dry sump were not only smaller case but isnt a dry sump more free revving (quicker power) with out the crank in oil ? Thought I read that somewhere ?
Many people will buy a 990 and add this and that-want more power,awd, bigger fuel capacity, yet still want a lighter bike. I still think a problem with this whole thing is trying to satisfy the mass's. Look at this thread and how we all agree but disagree, if they built what you want then they are bitching, build what he wants and you and others dont like it.
If KTM read this thread to find the platform for there now 800, they would probably say forget it, we will never please the large majority. And we all know how the internet can hurt a bikes reputation, or help build it.
I will say one thing- I still love my 990 for what it is and what it can do. For now its the best thing out there- for me.