Looking at some more recent aviation history.... Back a reasonable number of years ago, CASA introduced the LSA category. The biggest reason for this as per the initial whitepapers was to lower the cost of aircraft available for flying schools in order to keep flying schools profitable and to level the playing field with RA-Aus schools that were categorically booming at the time. GA schools were screaming very loudly about the flood of RA aircraft and schools available at a fraction of the cost of GA aircraft. LSA was a great idea as it allowed the lower cost “certification” of aircraft to enable GA flying schools to buy lower cost (including Australian made) aircraft.
You only have to look at the likes of Soar to see how successful this new approach was. Initially buying LSA Jabiru’s for sub $60k and then Foxbats for around $90k, to the point now of some 30+ aircraft at Moorabbin alone, including FoxBats, Vixens, Bristell’s and now Tecnams.
The side-effect of this however, appears to be bringing on the demise of the 172 for anything other than the big sausage factories such as Oxford.
Lets see what the long term future holds. The ratio of Rotax to Lycoming in GA may surprise many, particularly with LSA style 4 seaters with 115-150hp Turbo Rotaxes hitting the market now.