You can't blame profits then claim there's no additional costs. If there's no additional costs, how can it be eating into profits? Likewise, if there's additional costs that the consumer is unwilling to bear, why would they even enter that market? If the demand isn't there and people don't pay for products to justify the cost of manufacture and distribution, they don't get made unless you can con investors to keep funneling you money. This isn't about unfair and manipulative business practices. If you want to blame ignorance of manufacturers for leaving potential profit on the table, that's a different issue, but really it's just short people getting shafted from being a niche market because they are on the tail end of the bell curve.

If you want small wheel bikes, they exist, and you have to pay for them. No one said you can't make a high quality small wheel bike, that's a nonargument. Even if you bring cost down at the manufacturer, small wheel parts still suffer from economies of scale in both manufacture and distribution due to being a niche market. It's also incredibly silly to obsess over wheel size when you have things like cranks which are actual biokinetic fit points not being being proportionally short.