You've got to look where Honda is selling these bikes, the USA is likely not their biggest market.
In SE Asia this is a big bike, and the characteristics suit the market there. It seems to be popular in Thailand, and has now been released on the Philippines market, where their previous range topper dual-sport was the decades old XR200 5-speed.
Price, low seat height and all round ability with good road manners is what sells bikes there.
It's being sold around the world as an efficient, affordable, practical bike good for most road and offroad conditions, and as such hits the mark pretty well.
In this market they are up against the Chinese, who are starting to make some very good machines in the 200cc range that cost less than half of the old POS XR200 and less than a third of the CRF.
When the Chinese can finally solve their marketing and image issues, and get some consistency in their quality (some of the newer models are very good, some of the older ones are horrible), this segment will become even more interesting.
'11 Yamaha YBR125G (cheap and very cheerful
'12 Zongshen Fly / Motorstar MSX200-II (biggest-fun-to-dollar ratio of any bike I've owned)
'03 Honda VFR800 (sold)
'06 Husky TE610 (gone)