It is my understanding that the V-Rod is selling well outside the U.S.A.. When HD left AMF, they had to make a decision as to where to focus their limited resources - their traditional market, or the rest of us (ie the Nova project) - and they chose the traditional market. This has worked quite well for them. They have made some attempts to "reach out" with the V-Rod and the Buell, but as an established company, they have learned to stick with their core product and core customer base. And they are probably right to do so.
We like to pretend that we as motorcyclists are bold and different, and that just the HD crowd fights progress, but the facts seem to indicate that we are all stick-in-the-muds. We fight innovation and change tooth and nail, both in styling and technology. Some examples: hub steering, turbo's, fuel injection, electric power, diesel, ABS, enclosed bikes, KiPass recumbents, the original Katana, Pacific Coast, GTS, DN-01, and much more.
BTW, you are aware that BMW is switching to liquid cooling on its upcoming R1250's? The boxer twin was dumped years ago, but brought back because of demand by the traditionalists. So HD is only one of many subject to the forces of tradition.