Leica is a symbol of luxury and excellence. This status is maintained (it seems) with costly high end products that may not be exactly what working photographers or what amateur users/collectors want.
I haven't seen a made-by-Leica camera (besides mine) in anyone's hands since 2008 at the Akron OH Art Institute, a Leica M8. I don't doubt that they're more common in L.A., Miami, and New York, yet Charleston SC is one of the world's premier tourist destinations, so I should see a few since I play tourist downtown every Saturday and Sunday. Yet I don't. But a few people do recognize the Leica label on my cameras and bags.
Leica was essentially replaced in the 1950's by Nikon SLR's or whatever was Nikon's workhorse camera at the time. So other than a few botique compacts and forgettable 'R' cameras, Leica was stuck into rangefinders for decades afterward, until the M8.
But the real breakout was in 2009 with the intro of the M9, S, and X1. Three class-leading cameras, from what was seen to be a non-player. Then they came out with several new models when Leica fans were hoping that they would devote their resources to improving the existing (after 2009) lineup.
So, I don't think Leica needs to shed the image of 'expensive' as much as they need to improve the value of their mainline cameras, which are the X, S, and M series. If someone at Leica would drop the X Vario and the T, and come up with something better in a relatively compact zoom camera that looks like a Leica - something that Leica fans would warm up to right away, they could have a hit on their hands. Someone (or several someones) at Leica should be able to pool together the inventiveness of that 2009 team and make a real class-leading camera to replace the XV and T. That's what they need to do instead of producing endless variations of the M, some without view screens no less!