ILTB, I understand your skepticism, as it's obviously your natural state, but out here you can buy any type of cruiser you want brand new. I haven't seen an amsterdam yet in Los Angeles, but I see Electras all the time and I've seen Dutch bikes on Campus. Just because you aren't seeing these bikes in Iowa doesn't mean you couldn't get one if you wanted it badly enough.
People would probably prefer some of these simpler bikes, but becuase of their rarity they will demand a premium. I seriously doubt that an LBS could stay afloat in most cities catering to such a niche clientele. I'm sure most people would be happier on the kinds of bikes one sees in Amsterdam, but sadly those are not the bikes that sell and it's not just the industry's fault. Just like with cars if someone wants an electric car you can find one. You can't blame the auto industry for SUV's if no one wanted these cars then the companies would go out of business.