I agree with some of what you're saying. True small displacement street bikes have their place still. Honda is offering the CT125 Trail step through, which is as retro as it gets and to be honest as a woods plonker it's a great bike. I was sorry to see them trying to push a 350 single as the new CB 350 when the other brands are offing twins in that displacement category.I will take this opportunity to say I wish Honda or Yamaha had a TRUE modern classic.
Honda, bring back a modern CB250 or CB125 and get rid of the Grom
As for Grom's, they've sold bazillions of them, enough that the competition have offered their own clones. They appeal to the Millenial crowd. Personally I think it would be great to have a Grom racing league with dirt track and road course series.
It would be nice to see a reissue CB 125 though