Well... I agree, but from a business standpoint they had no reason to.
They had two VERY sucessful quads with NO COMPETITION. They had absolutely no incentive to dump more R&D money into improvements because nobody else was out there building sport quads that directly competed for market share. For over 10 years... any buyer going sport quad shopping had almost no other choice besides the Banshee and Blaster... except for a 300ex or Mojave or some other crappy handling, slow, heavy, ugly 4-stroke.
Between the time Honda finally gave up on the 250R, and up until the 400ex, Z400, DS650, Raptor and other respectable 4 strokes hit the market... nobody could touch a banshee in price and performance. Why spend the money making improvements if you don't have to?
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