I'm currently 'in the market' for an adventure bike and I've testridden a few. The 800GS was plain boring and the Tiger 800 a big disappointment. When I tried a 950 I was instantly sold. I'm used to the massive grunt of a Bandit 1200 and the 800's don't have it. The Triumph is actually very smooth but it's a road engine, I plan to go offroading a lot more. That thing has non-stop power, but it's just so boring. Also, on-road, where it's supposed to shine, it just didn't, the KTM was so much better. I actually blame the frame and suspension, which are quite frankly of a lower grade. That's what I'm afraid of KTM would do if that need to build a bike that's lighter and cheaper, but also a twin. Don't forget it's just 100cc's, that's not very shocking if you intend to lose weight. The frame can't go much lighter if you want 80hp, as that's not a shocking difference either. Quite frankly they'd need to sacrifice stiffness and thus roadholding. If that's what would happen, I'd definitely buy the 'old' 950/990 in stead.
That said, it would kind of make sense to introduce a smaller bike if an 1190 with 150hp is otherwise the only option.