jjn:Pinnacle are developing NextGen to replace Liquid, and the Liquid guys are worried that it will be moved downmarket so as not to threaten Avid MC. Even if that isn't the case, I can't see any marketing logic in eating away even more at NextGen's positioning by doing an upmarket version of Studio.
I agree with you somewhat. While Liquid is far more complex and feature rich and Studio, I do think that there is a place for something more that Studio but less than Liquid (or NextGen). More video/audio tracks, quicktime support, etc.... Multicam? No. Lots of 2D, 3D, Classic, GPU, Vectorscope, etc.? No.