Actually I think the Beats business case exactly underscores my and some others' point that the editorial is really beside the point, if the issue is identifying new markets and growing them, instead of obsessing about older niche markets.
Regardless of what audiophiles think of Beats' sound quality, Beats disrupted a traditionally stodgy headphone market (premium, over $100 on-ear/over-ear segment) with very savvy marketing and brand intelligence, chiefly stemming from its recording-music-industry founders' (Dre and Iovine) understanding of youth marketing and the power of celebrity-endorsement marketing. They made headphones a wanna-have lifestyle and fashion product for millennials, and grew the market segment. Moreover, they persuaded millennials to pay comparatively premium prices for Beats when they probably aren't spending comparably for traditional audio equipment--and they persuaded consumers that they were a company all about sound quality, whatever traditional audiophiles thought. Every millennial I know owns Beats (and AirPods). I've tried introducing them to Sennheiser and Audio Technica, but Beats and Apple brand loyalty are incredibly strong; their products are devices consumers want to be seen wearing or using.
And it's also telling that Apple, who purchased Beats for $3B, now with Beats, dominates the overall earphone/headphone market with wireless capturing ~76% of the earphone/headphone market. Yes, that's a technology company--not a traditional audio company--dominating and growing an audio segment. Like Beats, Apple has persuaded consumers to spend top dollar on trendy products, and create brand loyalty. It's also instructive that their products seem to comprise the primary audio medium for their customers' consumption of music and entertainment. (And let's not forget other technology players like Amazon and Google.) So does that mean their customers will only spend top dollar on streamlined, compact, user-friendly products like AirPods or Beats, but not on complicated traditional 7/5.1 HT set ups? I'd like to see data on that.
I'm not saying that making all audio equipment fashionable and trendy will save the audio industry. But audio manufacturers do need to understand what motivates their potentially NEW customers, how to develop products for them, and how to market to them, rather than looking inwardly at a stagnant niche market. They could learn from Beats.