A couple of thoughts along that line for those not part of the ardent Glock-or-nothing base.
I don't know what Glock's profit margins are, but if they do want a lower priced, "entry" Glock this could be it. Claim that because it's smaller they can price it more in-line with competition. No pressure to reduce prices on the other models as this isn't a "real" gun, just an entry level one for people to try out before they trade up to the big boys. (I'm not thinking that way, but it could be a way to subtly spin it.)
Regardless of price, many first time buyers are going to trust the Glock name, because they've heard it so much. I bet many non-hobbyists have never heard of Springfield Armory, they think Ruger makes SA revolvers and shotguns, and that S&W only makes revolvers.