> It is also interesting that MusicMan (Another Fender company!) has gone differently; still some of the most recognizable designs, but they have been selling officially licensed versions instead to capture the lower end. (SUB, OLP, Sterling etc), and don't have the copycats of the Fender models.

That's basically what Fender does with Squier. Arguably they invented that move back in the 80s.

I think it's more of a case of the whole market going stale. The biggest driver of guitar sales, rock music, is still relevant but not the primary driver of culture that it once was. You can only increase the playability of a guitar so much. In a lot of ways, it's a commodity now, and the owners of Fender - some investment firm - are trying to make good on their bet by either ignoring that fact or trying to make them not a commodity again.